Bathurst Regional Council's official dam reading on Tuesday found the level had dropped to 28.5 per cent capacity, down from 29.5 per cent a week earlier and setting a new record low since the raising of the dam wall in 2000.

The continued drop in the dam level has prompted council to move to the next stage of extreme water restrictions from Monday, February 24.

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Under the new restrictions, homeowners will be banned from using a hose, microspray system or other water-efficient irrigation systems.

Instead, gardens can only be watered using buckets or watering cans.

Watering times will also be varied, with watering allowed before 10am or after 4pm, on Wednesdays and Sundays only for 30 minutes of filling time. The 30 minutes will apply for the time it takes to fill buckets and watering cans.

Greywater which can be collected from showers, sinks and laundries can still be applied before 10am and after 4pm on any day.

"Water restrictions are an important and necessary measure designed to reduce water consumption and give council time to complete important water infrastructure projects to augment council's water supply," mayor Bobby Bourke said.

"I would like to thank our community for your overwhelming support of water restrictions.

"Residents, businesses and community groups have been very responsive in adopting water conservation measures and complying with the water restrictions."

For more information visit www.bathurst.nsw.gov.au/waterrestrictions or call the water restrictions hotline on 6333 1683.