Thames Water has decided not to apply for a drought order, against advice given the Environment Agency.

At yesterday's board meeting, members decided a fall in demand for water, an increase in reservoir levels and a maintaining of river flows meant a drought order was not necessary yet.

Thames Water chief executive Jeremy Pelczer said: "In making a decision, we need to consider long-term questions, such as how long the drought might last and the possibility of a third consecutive dry winter.

"We also need to take into account more immediate issues like rainfall levels, the ability to recharge reservoirs and ongoing efforts to reduce demand.

"We are very mindful of the impact a drought order would have on many individuals and businesses, while at the same time we understand the very legitimate concerns of the Environment Agency.

"The situation remains finely balanced.

"There remains a distinct possibility that we will need to apply for a drought order in the coming weeks."

Thames Water introduced a hosepipe and sprinkler ban across its region on April 3 the first restrictions for 15 years.