Kempsey Shire Council is optimistic about its water supply after recent rainfall resulted in a strong flow at the Macleay River.
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Council's Water and Sewer manager Wes Trotter said the Steuart McIntyre Dam is continuing to be refilled through the Sherwood Borefield.
As of 2pm on Monday, February 10 the dam's level was at 66 percent after the weekend's rain event.
Mr Trotter said heavy rainfall presents other complications for water supply.
"We need to ensure the quality of this vital resource remains of a high standard," he said.
Kempsey Council will continue to enforce level 3 water restrictions.
"We hope to be in a position to reassess the level in the near future," Mr Trotter said.
Unfortunately, upriver the current rain will increase the issue with the water quality.
"After the rain event the river will take some time to return to an acceptable quality," Mr Trotter said.
"Until then, the upriver communities will still need water to be trucked in."
The council recently received a $4 million NSW Government grant to initiate an emergency treatment plant, to mitigate the risk of algae outbreaks in the future.
Completion of the plant is anticipated to be in the second half of 2020.
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