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Water companies in south east England should introduce hose-pipe bans as soon as next month to avoid the prospect of standpipes, the Environment Agency has said.
The warning from the Environment Agency comes as the Met Office reveals parts of southern England have had the driest two consecutive winters since 1920-22.
The Met Office works closely with Environment Agency and water companies to monitor levels of rainfall.
In some parts of the south east, reservoirs are at less than half their capacity at a time when they should be at or near full as the country emerges from the winter.
"We are in a serious situation now, where both the environment and our water supplies are at risk," Environment Agency chief Barbara Young said. "Groundwater levels in some areas are the lowest on record."
The Agency said the extreme measures of queuing in the streets for water, or having supplies cut to households at certain times, could happen this summer after the south east suffered its driest period since 1921.
"There is still time for rain this winter and spring to reduce the risk of drought, but water companies shouldn't just hope for rain - they must act now in case the weather stays dry," said Barbara Young.
"If water companies delay introducing hose-pipe bans now, extreme steps to manage water supplies over summer may be needed, such as standpipes and rota cuts," she said.
According to the Met Office's long-range forecasting expert Dr Richard Graham, the outlook for the next few months is uncertain.
"There are significant uncertainties in seasonal prediction, however, in terms of rainfall, it looks as though it could be drier than normal in the north. But there are equal probabilities of dry, normal or wet weather for the south of the country," he said.
But Barbara Young has warned that even if it returned to normal over coming months there would still be serious problems in some areas.
The country has suffered seven major droughts in the last century, with the most recent taking place 10 years ago
Britons use on average 150 litres of water a day, and Young said if everyone managed to cut down consumption by just four litres a day - say by turning taps off while brushing their teeth - it would be enough to supply 600,000 homes.
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