The town was forced to level 5 water restrictions, the highest level, on the first day of 2020. But with recent rainfall, the region looks greener than it has in months.

The mayor still wants to adopt a wait and see policy.

"I think we're going to be very conservative in reducing the restrictions. We'll be looking at it very, very closely," the mayor said in an interview on Monday.

"It's great that we've got rain but we need a lot of rain to overcome what's happened in the last three years. We don't want to be too quick on making those decisions about the water restrictions."

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With current use rates of around 1.4 megalitres a week the town had around six months' water left at Christmas.

But with recent rainfall in its catchment areas, the Beardy Weir sits at less than 500mm below top level; it is almost full, according to a council press release.

But the mayor said she is still concerned about maintaining supply through the town's dry winter. And with the town today marking 286 days on restrictions, it's over double its second longest drought.

In an interview with the Glen Innes Examiner on Monday, Mayor Sparks announced she would be backing a number of water saving initiatives.

From encouraging individuals to buy water tanks and invest in water efficient washing machines through a rebate, to using grey water to water public parks and gardens, Mayor Sparks thinks council can do more.

The shire has already developed a grey water dam for use fighting bushfires. Once that's no longer needed, she thinks, it could be repurposed for gardening.

"We need to be thinking in those terms all the time; how can we conserve water, how can we save water when we get rain."

One solution that isn't yet on the agenda is drinking recycled water; that option is more "complicated and complex", she said.

Labor MP David Harris last year suggested parliament's Legislative Assembly Committee on Investment, Industry and Regional Development could look at recycled water use as a long-term solution for water shortages.

Tenterfield shire last year considered drinking recycled water as an option during their water crisis.

Deepwater evaded level 5 restrictions after rain over the holiday period.

Glen Innes Severn council will soon start pumping water from the main weir storage into Eerindii ponds, a process that should take about a month, according to a recent media release.

The town has received over 66mm of rain so far in January.