Droughts in Australia: Australia's east faces threat of running out of water

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Parts of Australia's east continue to cope with one of the worst droughts in decades. Sydney has joined the list of cities and towns that are under now water restrictions because of a lack of rain. That's especially critical for almost a dozen areas facing the very real threat of running out of water. Greg Navarro has more.

Even during a picturesque sunrise, the impacts from the lack of rain are visible. The brown earth, and empty, parched paddocks where crops once grew dominate the landscape across much of rural New South Wales.

For 35 year old Andrew Freeth, those impacts are inescapable.

ANDREW FREETH FARMER "This is the worst drought that this area has seen in my father's lifetime, in my lifetime."

That means making sure the grain stored in these silos to hand feed to his sheep lasts and planning a season without planting crops.

ANDREW FREETH FARMER "We are now moving into our 3rd year, so we are really having to wind back spending and be very careful on any future decisions we make and we are really just trying to hold on now until the season turns around."

About 95% of New South Wales is experiencing the kind of drought few people have witnessed. Ten drought ravaged areas are in serious danger of running out of drinking water.

GREG NAVARRO COLLIE "It's estimated that some of the hardest-hit areas will require truckloads of water just to survive, up to 1,400 truckloads brought in on roads like this in a single month. In some cases, costing up to $1.5 million."

The economic impact from the lack of water is flowing through communities, including the city of Dubbo. Charties that run retail stores here and offer assistance are seeing an increase in the number of people who need help.

BRUCE BUCHANAN EXECUTIVE OFFICER, ST. VINCENT DE PAUL NSW "Retail is hurting as well because people obviously don't have spare cash to spend, that also flows on to other industries such as hairdressers where people have gotten a hair cut every 4 to 6 weeks, now they get one every 2 to 3 months, you've got mums now cutting kids' hair at home."

For now, there is little relief in the forecast as the drought threatens to extend into another hot dry summer.

ANDREW FREETH FARMER "Probably the biggest challenge as much as the dry landscape or the hungry sheep or the lack of crops to harvest is staying mentally strong."

While figuring out how much more to cut back until those options, like so many rivers here run dry. Greg Navarro, CGTN, Collie.