Sydney could face level two water restrictions by the end of the year, as dam levels continue to fall.

Greater Sydney has been under level one water restrictions since June, with fines of $220 for individuals and $550 for businesses caught breaking the rules.

Report now say Sydney only has enough water to last until May 2022, based on current forecasts.

Level two restrictions are set to kick in when Sydney’s dam levels hit 40 per cent – they are currently at 46.6 per cent, down from 64.4 per cent this time last year.

NSW Water Minister Melinda Pavey says the government is considering bringing in restrictions sooner.

“I think it is imperative that the government consider all options,” she said.

“If it doesn’t rain it is inevitable, whether it’s February or whether it’s sooner, that’s something the government is having conversations about. [They] are difficult restrictions, they’re particularly difficult for older people because it means you can’t hose your garden, not even with the nozzle.

“That weighs heavily on our mind and the impact of that on older people and I think it’s a time that we’ve got to start thinking about our next-door neighbours and what help we might need to give them if we go to level two restrictions.”