Orange City Council reported as of 10am on Monday the city's water storage was sitting at 39 per cent, with the rise of four per cent in just one week coming from recent rain.

Mayor Reg Kidd said the increase was "phenomenal".

"We can all let out a collective sigh of relief as we have tackled the worst of the drought and we're coming out the other side," Cr Kidd said.

"I'd like to congratulate the residents of Orange for being so diligent in their responsible use of water over the last 18 months, and indeed before the drought.

"I'm again asking Orange residents to keep up the good work. Let's all work together to get our storage levels to 50 per cent."

He said the city hitting 50 per cent would give Orange the "breathing room we need" to get through summer without any concerns, and thanked NSW water minister Melinda Pavey for her assistance.

Orange City Council CEO David Waddell said Council would ease restrictions to level four, from level five, as soon as the storage reached the 40 per cent milestone.

"Given the recent rain, we have had a huge increase in the amount of water flowing into Suma Park Dam from natural inflows in Summer Hill Creek," Mr Waddell said.

"As of Monday morning it was flowing at the rate of 57 megalitres per day.

"By comparison, earlier in the year, there was a total of 183 mega litres of natural inflows into the dam during the three months between mid-February to Mid-May."

He warned while residents would still need to follow level four restrictions, he said recent rain combined with storm-water harvesting schemes and the Macquarie Pipeline meant 50 per cent storage was a "realistic" hope ahead of summer.

"I'd also like to thank the Water Minister for her continued support for water projects in Orange and the region, throughout this really tough time," he said.

"The contribution of Orange residents and businesses has also been crucial in getting us through the worst drought on record.

"Looking at the forecast, we will likely reach 40 per cent within the next few days. As soon as this milestone is reached Council will announce the easing of restrictions."