At Tuesday night's council meeting councillors questioned whether the reported weekly dam capacity figures were accurate and some now fear that the dam level may actually be is a lot lower than is believed.

Councillor Bob O'Bernier said he was sceptical about the actual dam capacity. “I don't believe that the dam is at 11-point-something per cent - it could be nearer to eight per cent,” he said.

Mayor Keith Sullivan echoed this concern, saying that some ratepayers have said that the dam seemed much lower at 13 per cent this time than the last time it dam reached the same reported level.

Council have installed their own pegs at the dam as a visual indicator of how much the dam drops each week.

Cr Sullivan has also identified State Water as the main obstacle preventing Oberon from being able to save its water.

He said that State Water CEO, George Warne, seems to think that since Delta Electricity have agreed to cut of their usage of Oberon Dam at eight per cent, Oberon should be happy.

Cr Sullivan said that even though Oberon dam is not as low as other dams in the state, he would prefer Oberon's water situation did not reach crisis point.

Councillors are also amazed that a huge supplier of electricity, such as Delta, which is understood to supply 35 per cent of the state with electricity, is relying upon such an unsustainable water source.

“Thirty-five per cent of the state is relying upon that puddle out the back of Oberon,” said Councillor Don Fitzpatrick.

Cr Fitzpatrick urged council to view this issue as not just one for Oberon, but one for the thousands of electricity users across the state.

Council will send a letter to Minister Robertson and the NSW Premier reminding them that the state's electricity is in a fragile state due to its heavy reliance on our rapidly-diminishing water supply.