MidCoast Council has cancelled plans for a temporary desalination plant in Nabiac following good rainfall in January, with more predicted in February.
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"After good rainfall a week ago, the project was suspended while we assessed our situation across the region in regards to water security," Rob Scott of MidCoast Council said.
"We have advised relevant authorities of the decision last week, and we're confident that with the changing weather conditions and the expansion of the Nabiac borefield, the desalination project is not likely to be required in the near future."
The bushfire emergency water access points will also be closed and capped from next week.
"Demand on these sites has dropped significantly and water is now available from other sources," Mr Scott said.
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"Good rainfall through January in the catchment has allowed us to start refilling Bootawa Dam with levels increasing from 30 per cent just two weeks ago to above 50 per cent this week."
"There is more rain predicted for this week and we will be in a good position to review water restrictions, there is a possibility we may be able to ease restrictions in February."
Severe level four water restrictions have been in place across most of the MidCoast since November 25 last year, and residents and local business have felt the impact of the water shortage.
There is more rain predicted for this week and we will be in a good position to review water restrictions, there is a possibility we may be able to ease restrictions in February.
"We are mindful of the considerable impact that severe restrictions place on our community, and we're looking to provide some respite as soon as we can be confident that there's enough water in our storages to continue to provide for our community," said Mr Scott.
"As always, our community has pulled together and worked hard to reduce water use and we thank everyone for their efforts."
For now, everyone is encouraged to keep up the good efforts so far to conserve water, stick with level four restrictions (or level three in Tea Gardens/Hawks Nest) and watch out for new announcements.
For more information about water restrictions, and to keep updated on current developments, visit www.midcoast.nsw.gov.au/waterrestrictions.