DAY zero for Uralla is just six months away, the local council has revealed.
Uralla Shire Council acting general manager David Aber said Kentucky Creek Dam was now due to run dry on July 23.
"There was probably some run off gone in there over the weekend," he said.
"I'm trying to encourage people to be a bit obsessive about conserving water, and I think people are more conservation-minded here.
"That's made it a bit easier for us, plus we've got more people active in the area like Z-Net, who are looking at conservation measures and water saving measures and things like that. So, they're helping us put the message out."
Mr Aber said the prospect of water supplies running out in just over six-and-a-half months was a little scary and a very tight situation.
"The forecasts are looking like we'll get rain of some sort, and that may slowly drift down," he said.
"But, we've got to be really careful about where we are and how we'll plan for it. I've actually initiated with the state government in terms of how we look for alternate water sources, and also for assistance in doing that.
"Probably in the longer-term we might even look at the interconnection of water supplies if people are willing."
A report from the team who came in to help with the bottled water alert reported Uralla's Water Treatment Plant was in good condition.
"There's a bit of work to be done on the filters and things like that, but basically the plant's ok," he said.
"I think if we reach day zero the answer to our problem would have to be tankers coming in by road.
"We even tried to work out if we could use rail cars. The issue is actually getting the source and then delivering it into the dam."
With water levels at Kentucky Creek dropping significantly, Uralla Shire Council introduced level 5 restrictions to Uralla and Bundarra on Monday.
It comes as council's treatment plant still struggles to reduce the arsenic level in its potable water supply below Australian Drinking Water Guidelines of 0.01 milligrams per litre.
While Mr Aber reported "good results so far", he said work remained ongoing as council had some success with a very persistent problem.
Water from Laura Creek is being transported to Taylor's Pond to assist Bundarra manage the water shortage in the river.