Water from Orange will be pumped underground to Molong to prevent the town from running out of water, should reserves continue to trend towards unsafe levels.
Molong's main storage dam, Molong Creek Dam, was down to 37 per cent capacity this week, putting the town at risk of running out of water over summer if there wasn't significant rain.
Orange City Council has agreed to come to Cabonne's aid should the dam drop below the critical level, which was currently calculated at 12 per cent.
Cabonne Mayor Kevin Beatty said engineers are in the process of determining the exact capacity which would see silt compromise water quality.
"At about 12 per cent you'll start to have a really serious look at it," he said.
At about 12 per cent you'll start to have a really serious look at it,Cabonne Mayor Kevin Beatty
Cr Beatty said there was a real risk of Molong running out of water over summer and the expensive alternative would be to have water shipped in.
"Evaporation poses a real risk when we get those really extreme temperatures we often see in January and February," he said.
Molong had been on stage four water restrictions up until Monday, with levels raised this week to align them with Orange's stage-five restrictions, some of the toughest in the country.
Orange Mayor Reg Kidd said the city's water storage was at about 27 per cent, if it raised above 30 per cent council would consider lifting restriction to level four.
"Through the efforts of our community we're tracking along relatively comfortably compared to other communities across the state," he said.
Cr Kidd said the underground pipelines would eventually connect the regions water supplies to help protect city's and towns, including Orange, in emergency water situations.
"This is about taking care of our neighbours," he said.
Between 10-20 millilitres of water fell across the region from Sunday afternoon, with the station at Orange airport recording 18.6-mil, Molong recording 19-mil.
Cumnock tipped the scales at 26-mil while Mt Canobolas recorded only a couple of millimetres of rain.
Should Molong require water from Orange, half a megalitre a day would be transferred underground to an area down stream of Molong Creek Dam.
The pipeline is gravity fed which means neither council will need to foot the energy costs.
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