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Southern Water has ended the hosepipe ban it imposed for Hampshire and the Isle of Wight in August.
Reduced water demand saved 11 million litres over the past three months, which the company said has helped river levels improve sufficiently to remove restrictions.
Despite recent wetter, cooler weather, Southern said reservoir and river level remain lower than expected for this time of year across its region because of the summer drought.
Katy Taylor, chief customer officer, said the efforts of customers had helped protect the environment during unprecedented drought conditions and stressed it was important to use water wisely over the winter.
She said: “In the face of climate change and population growth, a dry winter could put us at risk of drought and restrictions again next year, so we must do what we can to protect and preserve this precious resource.”
Rainfall has been 27% below average for the year to date, however for October total rainfall in the south east of England was 124% of the long-term average for the month. Across the country it was 129% of the long-term average for October.
River flows returned to normal for the time of year at 41% of sites across England – including the Test and Itchen, which Southern imposed the ban to protect.
Across the country temporary usage bans were introduced in response to months of below average rainfall and heatwaves in July and August with zero rain in some parts. The Environment Agency declared 11 out of 14 regions to be in drought.
Hosepipe bans remain in place for Thames, Yorkshire, South East and South West customers in Cornwall and parts of North Devon. In Wales, Welsh Water imposed a ban in Pembrokeshire, which was lifted at the end of last month.
Yorkshire Water secured for drought permits at the end of October to reduce the amount of water reduced from 12 of its reservoirs where levels remained 25% below average for the time of year.
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