Despite decent rainfall in many parts of the Upper Hunter over the past couple of weeks, Singleton's main water source, the Glennies Creek Dam, remains at a critically low level.
As of Sunday, the dam was at just 37.2% capacity.
It's prompted Singleton Council to lift water restrictions to Level 2 as from March 1.
It means the odds and evens system applies when watering lawns and gardens and watering can only be done between 6am and 9am or 6pm and 9pm during summer.
Washing hard surfaces is banned and cars and boats can only be washed with a bucket.
Deputy Mayor, Tony Jarrett chaired Monday night's council, saying elevated water restrictions are required to conserve drinking water supplies.
"While it has been a welcome sight to see decent rainfall this month, the prolonged, severe drought conditions have seen Glennies Creek Dam levels continue to fall to their lowest ever levels," he said.
Cr Jarrett said council was also doing its part to save water by installing a recycled water system at the Shire's sewer treatment plant, making what was once Council's biggest user of water to one of the most efficient.
Council has also prepared a flipbook which will be delivered to all households this week explaining what the water restrictions mean, including tips on how to save water in the laundry, bathroom, kitchen and outside.
