Bendigo residents will have to wait until early next year for relief from stage three water restrictions while Ballarat reverts to stage one from August 1.

Coliban Water managing director Gavin Hanlon said several options needed to be considered before the decision was made.

“It’s important people know that Coliban Water will ease restrictions when it is responsible to do so,” he said. “We want to be confident we are not putting water for future years at risk. We like to have at least two years in reserve.”

Coliban’s water treatment plant also needs to be upgraded to cope with larger volumes of water before restrictions are eased.

“We’ve invested pretty heavily in upgrading our water treatment plant,” Mr Hanlon said. “It’s scheduled to finish early next year.’’

Mr Hanlon is confident Bendigo residents will not overuse water when restrictions are eased.

“People have learned to live with less water,” he said. “A large percentage of people have done little bits like mulch the garden, install water tanks or greywater systems. It all adds up.”

Premier John Brumby said the decision this week to ease Ballarat’s restrictions would be the start of a new era of opportunity and prosperity.

City of Greater Bendigo mayor Rod Campbell believes Bendigo will not suffer from ongoing stage three restrictions.

“We’re very much guided by Coliban Water but people have adjusted to changes and in ways are becoming more frugal about water use,’’ he said.

“It’s fair to say the city does not look like it is being held back.”

Coliban North and South water storages, including holding basins, are currently at 27.9 per cent while Ballarat’s White Swan Reservoir has reached 80 per cent capacity since the Goldfields Superpipe came into use in 2008.