Most of the North Island could be declared a drought zone by the end of the week, but Prime Minister John Key says the impact on the Government's books remains to be seen.

Slaughterman Kent Sambells' workload was "hectic" last week as Waikato farmers called him in to destroy ailing cattle and take them away for processing into pet food.

A damp start to summer followed by a prolonged spell of dry weather has provided perfect conditions for biting insects.

The NZIER shadow board thinks on balance the Reserve Bank should keep the official cash rate on hold at 2.5 per cent tomorrow, but compared with six weeks ago there is less support for a cut and more for a hike.

Long-awaited rain is forecast for the drought-hit Northland region, with showers expected in some areas over the weekend.

Bill English must be asking himself what he did in some past life to have seemingly so incensed the forces of nature, writes John Armstrong. "What next? A plague of locusts? Or frogs? Or boils?"

No farmers have applied for hardship assistance after the Government cleared the way for the extra support by declaring five regions drought-affected.

Most of the North Island is currently in the grip of a historic drought that is the most severe in over 70 years of climate records.

The wine industry risks slipping back into overproduction as one of the driest summers in living memory provides outstanding grape-growing conditions across the country, says an analyst.

Waikato dairy farmer Peter Brown rates his anxiety levels "about a 7.5" out of 10 as he endures his second drought in just five years.

Farmers should know in a few days if Tropical Cyclone Sandra, forming off the coast of Australia, will bring some vital rain to parched NZ farmland, forecasters say.

The parched North Island won't see rain for at least a week as hot, dry weather continues in what has been described as one of the worst droughts since the 1940s.

A climate expert believes summers like this one will become the new norm for New Zealand. Droughts have already been declared across much of the North Island.

A shortage of water across the Wellington region means there is now a ban on garden sprinklers and irrigation systems.

The drought is working its way down the country, and with with no change predicted until at least mid-March, farmers from Northland to Southland are suffering.

Droughts have been declared in South Auckland, Waikato, Bay of Plenty and Hawkes Bay regions, a week after drought was declared in Northland.

Here comes the end of the golden weather - but March is still forecast to treat sunseekers to the afterglow of an extremely fine summer.

A drought is expected to be declared in the Waikato this week after brief showers did little to help parched farms, and the Hawkes Bay is expected to follow suit.

A spell of the driest weather for years has parts of the North Island on drought alert. Cracks in the soil, dead grass, vegetables half their normal size, dry forests and fire alerts, are just some of the symptoms of the region's drought.

Patchy showers have fallen in the central, northern and eastern North Island this morning, but barely enough to top up water tanks and penetrate dry soil.

The big dry has parts of the country firmly in its grip. The Government has declared a drought in Northland and is expected to do so in Waikato.

The Inland Revenue Department has announced help for drought-hit Northland farmers.

The Government has officially declared a state of drought in Northland and authorities are expected to do the same in the Waikato today.

The North Island has had one of its driest summers in years, with farmers now feeling the brunt of the lack of water.