The company, also known as Dŵr Cymru, has thanked customers for their efforts to reduce consumption during what has been described as the driest spring in more than a century.
Ian Christie, managing director of water services at Welsh Water, said: “We’re thankful to everyone who has played their part by using a little less water and we’re asking customers to continue to do their bit.
“Even small changes can make a big difference.
“We are doing everything we can to avoid introducing restrictions.
“Our teams are working tirelessly to manage the situation, and we’re asking our customers to join us in using water responsibly.
“Every drop saved helps protect water supplies for the area.”
Despite four water companies in England introducing hosepipe bans in recent weeks, Welsh Water said most of its reservoirs remain in a healthy position.
The company is currently fixing around 700 leaks a week across its network and operating treatment works at higher capacity to meet summer demand.
In June, Welsh Water declared a ‘Developing Drought’ status for the Mid and South Ceredigion network, which includes parts of north Carmarthenshire and north Pembrokeshire.
Since then, 830 leakage repairs have been completed in Ceredigion.
Reservoir levels in the area have improved slightly thanks to customer efforts, but the Teifi Pools reservoirs remain 28 per cent lower than this time last year.
Welsh Water’s Cartref team has made nearly 500 customer visits in west Wales since April to help identify leaks and promote water efficiency.
The company continues to work with the Welsh Government, Natural Resources Wales, and stakeholders to monitor the situation.
Natural Resources Wales recently confirmed that north west Wales has returned to ‘prolonged dry weather’ status, but there are currently no concerns about water supplies in the region.