Lake Rowlands has filled and spilled with the weekend's rain and Central Tablelands Water has lifted the Level 4 water restrictions.
The Lake is the town water source communities including Grenfell, Eugowra, Canowindra and Manildra.
Central Tablelands Water general manager, Gavin Rhodes, said the rapid rate at which the lake had filled was incredible.
"With the catchment now saturated and all the tributaries flowing, the Lake increased from 32.5 per cent in late April to topping by the end of July," he said.
"During July the dam increased by over 40 per cent, with a 20 per cent increase occurring over a 30 hour period."
Customers were placed on Level 5 water restrictions in April, those were eased to Level 4 when some inflows were recorded.
Now the water authority's council has resolved to ease water restrictions to Level 1 as of Monday, August 3.
"It is fantastic to see Lake Rowlands spilling once again," CTW's chairman, Cr David Somervaille said.
"This spill event in such a short period of time displays the resilience of the catchment and clearly demonstrates the water security potential for the region."
The council was unanimous in endorsing the management recommendation to ease water restrictions, Cr Somervaille said, but encouraged people to continue to use water wisely.
Under Level 1 restrictions, customers can water lawns and gardens daily, between 6am to 10am and 4pm to 10pm.
More information on Level 1 water restrictions is available on CTW's website at www.ctw.nsw.gov.au or by contacting the CTW administration office on 02 6391 7200.
CTW currently has approximately 6,000 water connections and provides potable water to 15,000 consumers in 14 towns and villages across the Shires of Blayney, Cabonne and Weddin.