The Dunedin City Council put a level two water restriction in place when consumption hit 8800cu m in November, - the town only has consents in place for a daily take of 7600cu m.
Level two restricts the use of irrigation hoses and car washing to between 8pm and 8am.
Council water operations team leader Gerard McCombie said Mosgiel had been getting its water from Dunedin's Mt Grand reservoir while routine maintenance was carried out at Mosgiel's Quarry Rd reservoir.
The maintenance would be completed on Wednesday, and the town would return to using water from its bore system.
Mosgiel's water restrictions would be reconsidered soon.
"We're going to have a wee review of the water supply situation on January 20."
That would include a review of demand once people were back from holiday.
"We'll make a decision then."