After examining the monthly water report, Cr Wayne McAndrew requested another report on the total coast of the Clarence Water Transfer System, including grants and ongoing maintenance and operation costs.

The reason for Cr McAndrew's request for the extra report, along with the usual water report was simple, he said.

"I think it's important to have ready what we've done as a local government area and make sure that our residents are looked after in relation to the supply of water," he said.

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"...there's been some local governments like ours who have planned and spent money to drought proof our community.

"There's others that haven't."

Cr McAndrew said that, while some may believe it was appropriate to have some form of water restriction for all of NSW, he did not.

"It probably is appropriate for some that haven't put money and infrastructure in to drought-proof their local government areas, but we have," he said.

Mayor Cr Ray Thompson said he was concerned about the capacity of the Clarence Transfer System to supply Lithgow.

But according to a council water and waste water representative, Clarence is set up to give Lithgow seven mega litres of water per day.

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"On average Lithgow only uses five mega litres," he said.

Cr Maree Statham brought up the issue once again as a matter of great urgency later in the meeting.

"I've been speaking to a lot of people around the electorate over the past couple of weeks and it's been suggested to me that we should have the lowest water restrictions in Lithgow," she said.

"As you know our neighbours are struggling and if we don't start having very, very low water restriction we're going to get people who think it's their right to buy our water."

Cr Statham also said she thought it would be a good education process for residents because the long range weather forecasts suggested that there would be no significant rain event until March.

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But mayor Thompson said that he couldn't take it as a matter of great urgency because Lithgow had put itself into a position to have water.

"It's not our fault our neighbours haven't put themselves in the same position," he said.

"Mr Buckens [Lithgow City Council director of water and waste water] has made it quite clear that under the circumstances we can't just put on a water restriction without it all being verified."