Sydneysiders will face new water restrictions as dam levels continue to drop and NSW grapples with drought.

Water Minister Melinda Pavey on Tuesday announced that level one restrictions would be imposed across greater Sydney from Saturday.

The restrictions become compulsory when catchment levels fall to 50 per cent but the state government has triggered them early, with dam levels in greater Sydney at 53.5 per cent on Tuesday.

The restrictions include requirements that hoses have a trigger nozzle, lawns and gardens are not watered between 10am and 4pm and hoses are not left unattended unless topping up a pool.

There will be a three-month grace period before fines of $220 for individuals and $550 for businesses are imposed.

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