Record high temperatures, dry conditions and bushfires have put a strain on water resources in the surrounds.

Braidwood has implemented the highest level of water restrictions. The level four restrictions came into effect last Friday and has forced water to be trucked into town.

Elsewhere, water restrictions will be upgraded to level two in the Yass Valley this Sunday. Level two water restrictions were also enforced in Cooma and Bredbo on Saturday January 4 as the region experienced a day of destructive fire conditions.

While there are no water restrictions in the ACT at present, it has been indicated the territory could face water restrictions by the end of 2020 if current dry conditions continue.

Icon Water managing director Ray Hezkial said work completed over the last decade to increase water security in the ACT provided additional storage capacity which meant water restrictions were not yet required.

Storage capacity is 35 per cent higher than it was in the millennium drought.

But Mr Hezkial said Icon Water was constantly reviewing Bureau of Meteorology forecasts for the coming months, along with consumption and would apply restrictions if needed.

"The current weather pattern is unprecedented, both in temperature and reduced rainfall. We have also seen an increase in consumption patterns particularly on days of record temperatures, and we are closely monitoring this along with our dam levels and predicted weather patterns," he said.

"Our position remains that should circumstances change we won't hesitate to implement restrictions including the possibility of implementing them sooner than the indicated to date."

Braidwood's strengthened water restrictions were enforced as the town is no longer able to pump water from the Shoalhaven River.

Potable water is set to be delivered to Braidwood with five or six trucks to transport water to the town continuously for about 10 hours each day.

Queanbeyan-Palerang Regional Council has asked the NSW government to help cover the costs. The council has also requested access to Icon Water's supply.

Under the restrictions residents are encouraged to use only 150 litres of water per person per day.

"We are in an extraordinary dry spell. The combination of bushfires and ongoing drought continues to place pressure on our potable water supplies," QPRC chief executive Peter Taggart said.

"The past few months have been very challenging for Braidwood with drought, bushfires and water all causing so much concern in the community and with the council."

READ MORE:

Braidwood was placed on level two water restrictions in November and was upgraded to level three in December. Bungendore had level one water restrictions imposed in November which remain in place.

North of Canberra, level two water restrictions will be implemented across the Yass Valley on Sunday.

Yass Valley Council director of engineering Stan Robb said the situation was being constantly monitored and had changed faster than expected.

"The Yass Dam is currently sitting at 72 per cent and the time has come to increase our water restrictions to level two," he said.

"This is a few weeks earlier than we had first hoped due to a combination of record heat extremes, continuing drought and a much faster rate of water evaporation."

In Cooma and Bredbo, the decision to implement level two water restrictions was made before fire activity escalated in the region. Residents were informed on December 30.

Snowy Monaro Council acting director of operations and infrastructure Peter Smith said fires could impact water supply in the region.

"The behaviour of residents in some areas exceeded our ability to refill reservoirs... people thinking they are doing the right thing by hosing things down but on a 40-degree day when the fires are not yet near, it was just water evaporating into the air," he said.

It comes as a 4.5 million litre water reservoir in Cooma North burst on January 4 which sent water flooding down the streets of the town and damaged about 20 homes. The tank had been filled in the days before as the Snowy Monaro prepared for horror fire conditions.

But Mr Smith said the burst reservoir would not elevate water restrictions.

"The water reservoir burst was quite an unfortunate situation but it was actually water put in place to ensure we had additional water capacity over and above our standard capacity holding," he said.

Amber level water restrictions (level two equivalent) have been in place in Goulburn and Marulan since the start of December.

"With no rain in the immediate forecasts we need to continue to be water wise and dependent on no rainfall throughout January and February council will consider if we need to go to the next level of restriction," the council said in a statement.