Environment Southland has revised its classification of previously low water levels across the region.
Heavy and sustained rainfall during February has brought most of Southland's rivers and aquifers back to normal levels for this time of year.
Director of science and information Graham Sevicke-Jones said the council no longer considered Southland's water situation ''serious''.
With more rain forecast the chances of going back to water shortage conditions were low.
''Most of our underground aquifers have responded well to the rain we've had since January 29, with the exception of Garvie, Lintley and Edendale. Soil moisture levels have improved, and most rivers are at levels that are typical for this time of year.''
The Southland District Council and Invercargill City Council have lifted all domestic water use restrictions, and the Gore District Council has eased sprinkler restrictions.