OBERON Dam has fallen below 25 per cent and that means, according to Oberon Council's policy, level three water restrictions should apply.
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Council's general manager Gary Wallace, however, says Oberon will stay on level two for now.
He said flows are being monitored and council is communicating with Water NSW daily.
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He said the restrictions policy allows for flexibility.
Under level three water restrictions, sprinklers and fixed hoses are banned, but micro-sprays can be used for 15 minutes and handheld hoses for one hour every second day, outside the hours of 8am and 4pm, on odd or even days matching the house numbering system.
Level four restrictions are introduced if the dam falls below 20pc.