Supply levels at Myrtleford's domestic water storage have improved after bouts of rainfall in recent weeks and helped to provide some short-term relief for residents.

North East Water general manager of environment, systems and operations, John Day said on Friday that the level of Nil Gully reservoir has improved to 69 per cent, which is slightly better than last year’s 63 per cent.

"The community has responded positively to earlier calls to reduce water use and recent rainfall has allowed us to continue extracting from Buffalo Creek to help refill the reservoir," Mr Day said.

"We will continue to closely monitor rainfall, storage levels and water usage.

"We are not ruling out formal water restrictions being introduced by summer and are continuing to ask all residents and businesses to continue reducing water use, especially outdoors.

"Droughts often span multiple years, not just one season.

"That’s why it is vital we return to strong water conservation habits now, as the challenges we’re facing now could persist for several years.”

To learn more about your local water supply and for water saving tips, visit: www.newater.com.au/supply