STAGE two water restrictions will be introduced at Briagolong from next Tuesday, January 21.
Gippsland Water managing director Sarah Cumming said extended periods of lower-than-average rainfall meant the aquifer that supplies the town with drinking water was at an extremely low level.
"Last month, our team visited Briagolong to discuss the situation," he said.
"Unfortunately, conditions haven't improved in the past few months and the aquifer's water level is still continuing to decline."
Stage two water restrictions require residents to limit their water usage outside their home.
"For instance, customers can only operate watering systems in their gardens on alternate days between 6am and 8am in the morning and 6pm and 8pm in the evening," Ms Cumming said.
"While customers can use a hand-held hose fitted with a trigger nozzle to water their garden, they cannot water their lawn at any time.
"It also means there are different arrangements for filling and topping up pools or spas."
Ms Cumming said the organisation would monitor the aquifer's level and may need to progress to a higher level of water restrictions if the situation didn't improve.
"We'll continue to keep the Briagolong community informed about how we are maintaining their water supply," she said.
Ms Cumming also assured customers that there was no restriction on the CFA accessing water to fight fires, but residents should not rely on town water during emergencies.
Residents can find out more about water restrictions at a drop-in session from 6pm to 8pm at Briagolong Mechanics Institute Hall this Thursday.
A full list of stage two water restrictions can be found at www.gippswater.com.au/water-restrictions.