"We need to take time to confirm the impact the recent rain has had and secure a healthy long-term position for our rivers and aquifers," Phillips said.
Keeping the direction in place also gave Environment Southland the ability to assess the timing and intensity of an incoming weather system predicted for late Tuesday or early Wednesday next week.
Weather models for the next month were generally predicting ongoing lower than normal rainfall.
"Maintaining community water supplies is critical, particularly significant is the Ōreti River catchment which is the source of water for Invercargill and a number of major industries," Phillips said.
"The long-term effects of this drought are likely to be felt by many farmers over the winter, and into spring. We continue to work with industry groups and others to find ways of supporting Southland farmers."
The Water Shortage Direction currently allowed for irrigation in the whole of the Mataura catchment and allowed for irrigation from the less connected and confined aquifers in the region.
The Direction did not relate to irrigation from a storage pond or dam, or the spreading of effluent.