The entire Awanui catchment in the Far North, which provides Kaitaia's water, is already subject to a water shortage direction.
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NRC water and waste manager Ali McHugh said many coastal aquifers were reaching their lowest groundwater levels on record. The longer the drought went on, the worse the situation would become.
She expected coastal groundwater levels would drop significantly in the next few months, increasing the risk of saltwater intrusion, groundwater levels dropping below pump height, or bores drying up.
''If we don't conserve groundwater resources now there's a real risk that there will be water unsuitable for drinking, or even no water at all being available in some areas, particularly those with shallow aquifers," McHugh said.
''People need to appreciate that rain can recharge rivers and refill water tanks quite quickly, however this is not necessarily the case with groundwater systems.''
The NRC would be monitoring water use and would consider enforcement action, including prosecution, against anyone using water for non-essential purposes.
All but essential water use is already banned for households and businesses connected to town water supplies in Kaitaia, Rawene/Ōmanaia, Kaikohe, Waitangi/Paihia/Ōpua, Kawakawa/Moerewa and everywhere in the Kaipara.
■ Anyone with a critical need to take water who is unclear about whether they can do so under a water shortage direction should contact the NRC on 0800 002 004. Anyone whose essential bore dries up should also call the NRC for advice.