Water restrictions have been imposed on the Central Otago township of Arrowtown with immediate effect.
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The Queenstown Lakes District Council says reservoir levels have dropped rapidly and demand is expected to remain high.
Until further notice, residents are prohibited from using sprinklers, hoses and irrigation systems.
Council spokeswoman Erin Moogan said water storage was just above 55 percent because of dry weather and high demand during the peak tourist season.
