Orange has never been on Level 6 restrictions but the nation's toughest water rules will be introduced unless there is significant rain.
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Council CEO David Waddell said they had not defined what Level 6 would ban.
"We are in the process of looking at what Level 6 restrictions are and what the best bang for our buck is," he said.
A ban on garden watering and industry cuts are likely.
"I think it is fair to say the [ban on] watering of gardens under Level 6 would need to come in," he said.
"There could be a significant impact on the operations of water intensive industries."
Warrumbungle Shire Council introduced Level 6 restrictions for Mendooran, north of Dubbo, last year.
Those rules include restricting water use to 120 litres per person per day, a ban on any outside watering for residences and businesses, limiting the use of evaporative air-conditioners to four hours a day and a limit of only two washing machines loads of clothes a week.
A series of water forums for the community and businesses will be held at the Orange Civic Theatre next week.
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They start with a Business Water Forum on Wednesday, January 15 from 12.30pm-1.30pm. A Community Water Forum will be held that night from 5.30pm-7pm with a second community forum on Thursday, January 16 from 12.30pm-1.30pm.
A second Business Water Forum will be held on Thursday, January 16 from 5.30pm-7pm.
A council spokesman said council staff would also be available to offer advice on how people could minimise water use.
Businesses will also be given advice on working with alternative water sources.
Mayor Cr Reg Kidd said Orange had done a tremendous job so far in handling the water restrictions but more needed to be done, particularly by businesses.
"This will be no easy task, but I am confident that like the residents of the city the commercial sector can and must play a significant role in getting us through this drought," he said.
Cr Kidd said water information was available on the council's website.
"Staff are monitoring everything daily, that's put together weekly and that goes on our website and a full report to all councillors and that's a public document, so the information is there, there is no secrecy," Cr Kidd said.
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