People in Clonakilty are being asked to conserve water in the coming weeks.
Irish Water say demand in the town has put strain on supply in the past few days and says restrictions may be needed to allow reservoirs to build up again.
The situation is being made worse by warm weather and the widespread emergence of drought conditions.
The company says they are also monitoring areas including Dunmanway, Skibbereen, Bantry and Glengarrif as reservoir levels are below optimum.