An immediate water restriction has been issued for Arrowtown in an effort to conserve the Otago town's the rapidly dropping reservoir levels.
The Queenstown Lakes District Council have placed restrictions that are effective immediately until further notice.
Residents are not allowed to use sprinklers or any outdoor hosing, all irrigation and automatic watering systems must be turned off, and watering gardens and lawns is only permitted if using a hand-held watering can or bucket filled directly from a tap.
The continuing hot weather and low rainfall have coincided with peak demand on the local water supply.
"This combination of dry weather and unprecedented demand has resulted in Arrowtown's reservoir not replenishing sufficiently over successive nights," said QLDC's Erin Moogan.
"Storage is currently sitting just above 55 per cent.
"With the holiday population expected to remain high for the next few weeks we're calling on all residents, visitors and local businesses to reduce usage now so the reservoir can refill."
Reservoir levels will be assessed tomorrow at 10am.