The decision was a result of a combination of factors including the community's ongoing water savings and a significant reduction in leakage across Hunter Water's network.

"Since water restrictions were introduced almost a year ago, Lower Hunter residents have used on average 15 per cent less water than we expected, which is equivalent to saving the water use of 52,000 households," said Hunter Water Managing Director Darren Cleary.

"On top of that, Hunter Water's significant investment in leakage reduction across its network has led to a further 13 per cent fall last financial year, bringing the total reduction to 34 per cent in three years.

"This is an outstanding effort by the Lower Hunter community.

"These results, combined with decent winter rainfall and a promising weather outlook for wetter than average conditions in spring, are behind the decision to remove Level 1 water restrictions.

"While this is welcome news, we can't lose sight of the lessons from the severe drought and return to past water use habits.

"I'm pleased that so many people across the region have adopted the new habits brought on by water restrictions and it makes sense for them to continue these behaviours in their daily routines to help save our precious resource.

Hunter Water customers will return to permanent water conservation measures from 1 October.

Hunter Water has appealed for the Lower Hunter community to maintain the great water saving behaviours that have become the new normal.

"It's important that we all continue to save now for summer and not become complacent with our water use," said Mr Cleary.

"The severe drought demonstrated how quickly our water storages can fall during the warmer months as they have large surface areas and are prone to evaporation.

"We need everyone to help us Love Water all year round by continuing to make smart water choices in their everyday behaviour. These measures include only watering outdoors with a trigger nozzle hose before 10am and after 4pm and not hosing hard surfaces.

"Other simple choices such as reducing showers to 4 minutes and waiting for a full load before using the dishwasher and washing machine can also make a big difference when it comes to saving water."

For more information visit, www.hunterwater.com.au/smartchoices