CHAFFEY Dam has hit the trigger point for water restrictions to wind back, and the changes could come into play for local residents as early as next week.
Tamworth's main water source has reached 30 per cent capacity, after weekend rainfall caused water from the Peel River to surge into the dam.
The supply surpassed the trigger point on Monday, meaning water restrictions are expected to be rolled back to Level 3 from next week.
The city has been on Level 4 restrictions since August, after they were dropped back from strict Level 5 rules.
"Substantial rainfall across the region has seen significant inflows into Chaffey Dam," a Tamworth Regional Council (TRC) statement said.
The head of the Peel River, near Nundle, copped close to 150mm of rain during the past week.
Almost 4,000ML of the precious resource gushed down the Peel River and into Chaffey Dam in that time.
Environmental releases are still flowing out of the dam, but the milestone does not mean the amount being let out will increase.
"As per council's drought management plan, a decision on moving Tamworth, Moonbi and Kootingal to Level 3 water restrictions can not be made until Chaffey Dam reaches 30 per cent," the statement said.
TRC said if Chaffey reached the milestone on Monday, then Tamworth, Moonbi and Kootingal would move to Level 3 water restrictions on November 2.
Under the eased water restrictions, residents can use the town supply for outdoor watering with a hand-held hose for up to 15 minutes per day, during the allocated two hour window.
It also means the city pool on Kable Avenue could reopen, once it's fixed up.
The last time Tamworth was on such low water restrictions was in May last year.
Residents are reminded Level 3 will not come into effect until the official council announcement.