Agriculture Minister Damien O'Connor says he will continue to monitor the dry conditions in the Clutha district so the Government is ready to "step in if required".
Yesterday, Clutha-Southland MP Hamish Walker asked Mr O'Connor to officially declare drought in the district.
Earlier this week, Otago Federated Farmers president Simon Davies said Clutha was "basically in a drought" and he urged farmers to proactively manage their businesses.
Yesterday, Walker said the situation had "snuck up" on farmers and was getting worse.
"Niwa's drought index shows that Clutha is dry and is headed to drought very fast without substantial rain soon."