The move comes after inflows to the region's reservoirs for winter and spring were the lowest on record, putting pressure on already low storage levels.

The towns will be hit with stage three water restrictions - the most severe since 2002 when Daylesford and Hepburn Springs were put on stage four for about nine months.

Under stage three people will not be allowed to use fixed sprinklers or dripper systems to water lawns, gardens or sporting grounds, can only wash their cars with a bucket filled directly from a tap, and will be prohibited to leave

an outdoor tap, hose or sprinkler on unless it is hand held.

Daylesford and Hepburn Springs skipped stage one water restrictions on November 1 and moved straight to stage two.

Water storages are at 69.6 per cent capacity, holding 573 million litres.

This time last month was recorded at 76.4 per cent full, holding 628 million litres.

Central Highlands Water chairman John Barnes said the board had carefully considered all relevant information and community considerations in reaching their decision.

"The Central Highlands Water community has done an excellent job in conserving water, however we are now being challenged to work harder to use even less water in our daily activities coming into the summer months," he

said.

Water restrictions in Ampitheatre, Beaufort, Barry's Reef and Lexton will also be upped on Monday.

Ballarat, Creswick and Maryborough will remain on stage four water restrictions. Clunes and Dean will remain on permanent water-saving rules.

The Ballarat and District water supply is at 18.5 per cent full, holding 12,060 million litres.

Full water restriction details will be advertised in local newspapers.

For more information contact the freecall water restriction infoline on 1800 044 636 or visit www.chw.net.au