Water levels in Dannevirke have hit critically low levels and a letter drop was carried out to advise public of the severity of the situation and the urgent need for conservation efforts to increase.
The council is monitoring and managing other water supplies across the district as the drought-like weather continues and an update on these supplies will be available this week.
Since the Dannevirke letter drop there has been a reduction in the demand for water, with businesses and households actively conserving it.
"Efforts from around the table mean that we have reached a very delicate point of balance of supply [water coming in] versus demand [water going out].
"Despite having reached this delicate balance, it is absolutely critical that people continue to conserve water wherever possible. The support of the community will be essential to managing this going forward as the weather is forecast to continue to be hot and dry."
Maxwell said the council was working with Alliance freezing works which was facing something of a catch-22 situation.
"Farmers are selling off their stock as they have little feed or water but Alliance is working double shifts to keep up."
He said Alliance was on a low-water regime and was working closely with plant and property manager Dave Watson.
"What is really positive is that people, both private and businesses, on the whole have really come to the party when it comes to conserving water and the council really appreciates their efforts," Maxwell said.
The council also thanked Horizons Regional Council for their advice and support during the period of drought.
Maxwell said there were rumours around town the council would be imposing restricted trading hours on businesses but he said this wasn't the case.
In the meantime, the council reiterated that one way to conserve water was to check for dripping taps and leaking toilets.
"Leaks are a major source of wasted water and we are encouraging people to contact a plumber to fix these as soon as possible."
The council is taking a co-ordinated approach to this and says it will continue to provide updates as efficiently as it can.
More information is available on the council website including tips on how to save water, visit www.tararuadc.govt.nz/water.