With the dam level at 24.25 per cent this week, Oberon water restrictions have been dropped from Level 6 to Level 3, which means residents can now use micro-sprays for 15 minutes and hand held hoses for one hour every second day, outside the hours of 8am and 4pm on even days matching the house numbering.

Sprinklers and fixed hoses, however, are still banned.

Director of engineering Leigh Robins said council is simply sticking to the water restriction policy adopted by councillors, and that it is only fair on residents who have been putting up with water restrictions.

"People have been abiding by water restrictions for a while now and it goes both ways," he said.

One person who is very happy about the ease in water restrictions is avid local gardener Barry Stubbs.

Mr Stubbs has been unhappy with water restrictions for some time, as he has been unable to properly water his garden.

He said that he and many of his neighbours are over 70 years old and, due to Level 6 water restrictions, they have been forced to water gardens by bucket only.

"It's very difficult for them to even keep pot plants alive because they can't carry buckets full of water," he said.

Mr Stubbs said the eased water restrictions were good news for any gardener.

"It allows us to keep our gardens going," he said.

"It is a big advantage, providing the level of the dam is maintained during summer."

During the past week there has been more cold, wet and windy weather, with Black Springs receiving 41 millimetres of rain and Jenolan Caves receiving 37 millimetres.

Mr Robins said the recent welcome rain has also meant Delta Electricity has been able to draw on the Duckmaloi River for water for the power station, which has also kept more water in the dam.

Mr Robins said plans for the stormwater harvesting project for Oberon were on track.

The project will harvest and store water for use in the timber factories. He said the design was currently being finalised and environmental factors being reviewed.

Mr Robins said the report into the users of the Oberon dam is expected late in October.