No water is being released from Chaffey or Dungowan dams for Tamworth city's water supply.
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The volume of the precious resource flowing down the Peel River means Tamworth Regional Council (TRC) is drawing water from the river to meet Tamworth's needs, and not from a dam.
TRC water and waste director Bruce Logan said it's a chance for the supplies to replenish.
"There's enough water flowing in the Peel River that we can source water from our Peel River pump station without releasing any water from Chaffey Dam and meet the city's demands with that water," he said.
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Council statistics showed Chaffey Dam had risen to 25.5 per cent full on Wednesday, and Dungowan was sitting at about 98.4 per cent.
TRC had been sourcing water from Dungowan Dam, and planned to leave Chaffey Dam to replenish for as long as possible.
The city is now on Level 4 water restrictions after dropping back from severe Level 5 rules.
Tamworth water users smashed the average daily target of 18.5ML this week, using only 15.6ML per day.
A number of initiatives introduced during the drought for primary producers in 2018 are being cut off from September 14, after more than half the TRC area was confirmed to be at least in recovery from drought.
About 139 people had access to the initiatives and are being informed of the changes.