Water restrictions have been enacted in many cities and regions in Australia, which is the Earth's driest inhabited continent, in response to chronic water shortages resulting from the widespread drought. Depending upon the location, these can include restrictions on watering lawns, using sprinkler systems, washing vehicles, hosing pavement, refilling swimming pools, etc. Over population, evidence of drying climates, coupled with corresponding reductions in the supply of drinking water have led various state governments to consider alternative water sources to supplement existing sources, and to implement "water inspectors" who can issue penalties to those who waste water.
As of July 2007, some areas and towns have no water restrictions, including the Northern Territory, Regional Tasmania, Newcastle, Bathurst and Dubbo. There are also a few parts of Australia where the water storage levels are at or close to 100%, such as Taree. Many states describe the different levels of water restrictions in terms of "stages": starting at Stage 1, for the least restrictive, going up as far as Stage 8. The highest level reached in the current drought has been stage 7 for Kingaroy. There are different definitions given to each "stage" in different States.
There are presently four stages of temporary water restrictions which can be imposed by ACTEW Corporation:
Canberra was subject to Stage 1 restrictions from 1 November 2005, which were increased to Stage 2 after a year on 1 November 2006. The continuing drought led to a further increase to Stage 3 from 16 December 2006; the restrictions were maintained at Stage 3 throughout 2007 and 2008. From 1 November 2010 Canberra moved to Permanent Water Saving Rules due to heavy rain bringing water storages close to capacity.