Illawarra residents will be forced to curb their water usage as of Saturday when restrictions come into effect for the first time in almost a decade.
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The ongoing drought conditions and the rapid decline in dam levels have triggered the need for level one water restrictions.
The restrictions become compulsory under the Metropolitan Water Plan when catchment levels fall to 50 per cent but the state government has implemented them early.
On Tuesday dam levels in greater Sydney were at 53.5 per cent and were losing 0.5 percentage points per week, according to WaterNSW.
Minister for Water, Property and Housing Melinda Pavey said Greater Sydney, which includes the Illawarra, was seeing some the lowest inflows into its dams since the 1940s.
"It's vital we take early and decisive action," Mrs Pavey said.
"The Bureau of Meteorology's latest forecast is predicting below-average rainfall and higher temperatures for June to August, which are key drivers of stronger water demand.
"Water restrictions are an important drought response because they target the outdoor water use of all households."
Ms Pavey said the restrictions were necessary as regional NSW was experiencing a record drought.
"Water restrictions in Sydney mean that households across NSW are doing their bit to conserve water," she said.
There will be a three-month grace period before fines of $220 for individuals and $550 for businesses are imposed.
Under level one restrictions, residents can water their lawns and gardens with a watering can or bucket not with standard sprinklers or water systems.
Lawns can be watered by hand held hose before 10am or after 4pm, as long as the hose is fitted with a trigger nozzle.
Residents can wash vehicles and buildings with a bucket, a hose fitted with a trigger nozzle or high pressure cleaning equipment and can top up an existing pool or spa to replace water that has been lost through evaporation.
People can not clean hard surfaces such as as paths, driveways and paved areas with a hose as part of general cleaning
Exemptions include using recycled, grey, rain, bore and river water and for water parks, water used for firefighting, water used for dust suppression and concrete mixing and automatic car washes.
