Water tanks are being built in Stanthorpe as local dams run dry.

The Queensland town is crippled by drought so severe it will soon run out of water entirely.

“I'm not going to allow families to run out of drinking water,” Premier Annastacia Palaszczuk said this week.

She announced funding to help the Southern Downs Regional Council with the cost of trucking water into the town, but did not give a specific figure.

The megalitre of water the town needs each day is forecast to cost around $1 million a month.

“We'll be building two one-megalitre tanks,” Stanthorpe Mayor Tracy Dobie said.

The town is expected to run out of water in late December, with the Bureau of Meteorology not predicting any significant rain across the region in the coming months.