Council group manager infrastructure Chris Chapman said staff would monitor usage, river flows and weather forecasts and apply restrictions if needed.
There were still issues with leakage at the Laws Rd dam, which was currently operating to a maximum height of 9.5 metres to mitigate risks to the dam wall.
Council said the dam would still have far more water stored going into this summer than it did last summer when initial repairs resulted in it only being 4.2 metres full last October.
"We appreciate that ongoing issues with Dannevirke's water supply is frustrating, and appreciate your patience as we seek to implement a good, long term solution to this."