Wallabadah will move to level 3 water restrictions from Wednesday, January 15 to further save the town's precious resource.
The tighter restrictions were put in place because of an ongoing aquifer decline at the town's number two water pump station (WPS).
Liverpool Plains Shire Council (LPSC) water services manager Rod Batterham said the town's original source, the number one WPS, was "at a level that is unusable to meet demand", and the new WPS "has experienced steady drawdown ... requiring restrictions to be stepped up".
"The gradual decline in water level due to the lack of rainfall has combined with increasing water usage that is well in excess of the target usage. This has resulted in a rapid decline in water level in late December and early January, surpassing the level 2 and level 3 triggers," Mr Batterham said.
"The water usage target under level 3 restrictions is 98 kilolitres per day during January. Usage at this rate should stabilise the aquifer at least for the remainder of this summer.
"If decline in the water level continues, level 4 restrictions will be enforced allowing no outdoor water usage."
Under level 3 restrictions use of buckets and watering cans is restricted to between 6pm and 8pm, and all fixed sprinklers and handheld hoses are banned.
Werris Creek will remain on level 2 restrictions, and Quirindi, Willow Tree, Spring Ridge, Caroona, Premer and Blackville supplies will remain on level 1 restrictions.
LPSC mayor Andrew Hope said tips and ideas for saving water are available on the council's website, and urged residents to remember that savings could be made both inside and outside the home.
"Residents are asked to be on the lookout for water leaks and to please report them to council, as this is the best way for council to identify problem leaks," Cr Hope said.
"Please bear in mind that dry soil causes more leaks than normal so it may take council a little extra time to get our crews to a leak you report.
"With no end to the drought currently forecast it is vital everyone is water conscious and water wise."