Illawarra water restrictions could be eased next month - but only if testing shows it is safe to drink after the bushfires.
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Water Minister Melinda Pavey said Wollongong, the Blue Mountains and Sydney could fall back to Level One restrictions on March 1, due to the recent intense rains filling the dams in the region.
But Ms Pavey said there was concerns of water quality, as it flowed across bushfire-burnt land and into the dams.
Earlier this month, Sydney's Warragamba Dam was closed after bushfire ash contamination was detected.
On March 1 we expect Greater Sydney will revert back to Level 1 water restrictions.
- Water Minister Melinda Pavey
"A number of initiatives are in place to ensure the water is safe for use, including extensive testing, filtration and nets to catch debris, but we are allowing an extra two weeks purely as a precautionary measure," Ms Pavey said.
"It will also give the system time to recover and on March 1 we expect Greater Sydney will revert back to Level 1 water restrictions, subject to water quality assessment by Water NSW and Sydney Water."
It remains unclear whether plans for a possible desalination plant for the Illawarra is still on the cards.
Earlier this month, Ms Pavey floated the possibility of a desalination plant for the Illawarra - but only if the present drought and rainfall conditions persisted.
The minister's office was asked about the future of the plant but did not respond by deadline.
Under Level 1 water restrictions, hoses cannot be left running unattended, and vehicles can only be washed with a hose if it is fitted with a trigger nozzle.
Standard sprinklers and watering systems cannot be used at any time.
Fines will still apply for breaches - $220 for residential breaches and $550 for businesses.