Irish Water and Laois County Council are asking people to check for leaks and conserve water as the warm weather hits supply.
Homes, farms and businesses in Portlaoise are asked to do this whilst adhering to public health advice on hand washing and hygiene regarding COVID-19.
Demand for water is currently higher than production capacity at Kilminchy water treatment plant.
Combined with a steady increase in demand due to current warm weather, levels of treated water in the reservoir have dropped.
Irish Water working with Laois County Council are monitoring the situation on a continual basis.
Water levels in current wells supplying Portlaoise Public Water Supply Scheme are at a lower level than they were on the same date in previous years.
In order to reduce the risk of water disruptions to customers, Irish Water, in partnership with Laois County Council, is working to bring into production a new well at Coolbangher to provide additional water into the Kilminchy Water Treatment Plant.
Works are expected to be completed at the end of August.
Speaking about the current water supply situation, John Gavin, Irish Water, said: “Irish Water is appealing to all customers to conserve water as demand is higher than the production capacity of the water treatment plant.
“We are asking the public to conserve water where possible and to only use what they need whilst continuing to adhere to public health advice regarding COVID-19. We have seen demand creeping up in recent weeks, spiking over the past few days.
“Safe, clean, treated water is not in unlimited supply and we all have to play a part in conserving it for essential use.
“We are also appealing to homes, businesses and those responsible for unoccupied buildings to check for leaks whilst adhering to current public health regulations and advice, to turn off water where it’s not needed and report leaks they see on the public network to us.”
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