Wellington Water is working with emergency agencies to deal with potentially critically low water levels this summer.
The capital is currently under level 1 water restrictions, meaning households can only use sprinklers every second day.
But, due to warmer weather and leaky pipe infrastructure, the water provider is preparing for level 3 restrictions - that would see all outdoor residential use for water banned.
Wellington Water drinking water chief advisor Laurence Edwards said if there was a long dry summer and water supply in areas like Upper Hutt's Macaskill Lakes did get drawn down to dangerous levels, it would have to speak to the Wellington Region Emergency Management Office (WREMO) about what measures could be taken.
"Be that talking to the regional council about what else we can get in terms of supply and those sorts of things ... we are just going through that process at the moment in terms of putting that plan together."
Edwards said it could not rule out the possibility of the region being put under level 4 water restrictions, which would see a ban on all outdoor water use and a reduction in indoor water use.
"We've got to be as prepared as we can be."
The last time Wellington had level 3 restrictions was in 2013.
In response to the threat of reduced water levels this summer, Wellington Water will kick off a campaign on Monday to encourage the city's residents to reduce water usage where possible.
WREMO gets involved
The Wellington Region Emergency Management Office will play a coordination role in the event of a potential water shortage this summer.
WREMO regional manager Jeremy Holmes said he met with Wellington Water and the region's councils a month ago for a briefing on the possibility of a shortage.
He said those conversations were now ongoing with operational planning and the assigning of roles and responsibilities under way.
"WREMO's job is a coordinating organisation. Our job is to make sure that all the various parties in the region understand the situation and are taking appropriate steps to ensure that water is available".
But Holmes was worried acute water shortage warnings for the Wellington region could continue for years.
He said an ageing water network and an increasing population would not make things easier in the future.
"Our water supply network is not currently able to provide the level of water that is required for that large increase in population. So there's some work to be done in that space to ensure there's an adequate supply of water going forward".
Holmes said water was a precious resource and it needed to be used responsibly.
"If we all play our part, then I'm sure we can navigate it successfully."