Armidale Regional Council Mayor Simon Murray has described Guyra's water situation as being on a knife's edge.
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With less than 100 days of water remaining in Gurya's dam, and the Malpas Pipeline due to be opened in 100 days, he thinks it was time for people to realise they needed to save water.
"If there is no rain, Guyra is due to run out of water in August," he said.
"The difficulty that we have is that should we use all the water in the Guyra Dams, and then switch across to the pipeline, if it has any problem with it we have no backup while we sort it out.
"What we would like to happen is that we get the pipeline operational before we empty the Guyra Dam, so we have some backup."
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Council CEO Susan Law said council needed to take some fairly robust measures to conserve water.
"Guyra residents are being notified that they will be going onto Level 4 restrictions in a fortnight," she said.
"We're not quite sure why we have seen no reduction in water usage, perhaps people are just not used to conserving water in this New England area."