About 29 Orange households were sent warning letters about not obeying water restrictions in the past month.
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Orange City Council spokesman Nick Redmond said there had been "a steady number of complaints" from residents dobbing in others who were not following the Level 5 restrictions.
"The council is taking a number of approaches. The first step can be a warning letter to let a resident know there's been a complaint about water use at their address," he said.
"During December alone 29 warning letters were sent out."
Mr Redmond said council's water ranger was also going to houses to talk to residents where a concern has been highlighted. "In the vast majority of cases people are pleased to co-operate and to get to the cause of the problem," he said.
He said in some cases people were unaware others had access to an underground bore, had a rainwater tank or there was a water leak.
"The ranger will check out the plumbing to make sure the tank isn't being automatically topped up from the town water system. They can then offer the resident a council sign for their front fence to show an alternative water source is being used."
While the council has not issued fines to residents caught disobeying the restrictions, which allow garden watering only from 6pm-7pm on Sundays, it is also unlikely to follow measures by Dubbo Regional Council to crackdown on illegal watering.
Council CEO Michael McMahon said offenders would no longer receive warnings but would face a $220 fine.
I think the cameras will make people think about what they're saying and their actions.
- Michael McMahon, Dubbo Regional Council CEO
Six rangers in Dubbo and Wellington will use body cameras to record evidence of non-compliance.
He said the camera footage would be used as evidence if the fine was not paid and the matter went to court.
"I think the cameras will make people think about what they're saying and their actions. It will slow them down a little bit," he said.
Bathurst councillors have rejected Dubbo's move and will continue to issue warning notices.
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