Restrictions may be placed on those allowed to take water out of the local waterways amid worries over levels.
The Environment Agency says it “is taking action following prolonged dry conditions in South Lincolnshire and Northamptonshire”.
A spokesman said: “Following a dry spring, river flows and some groundwater levels are ‘below normal’ in the Rivers Welland and Nene.
“Impacts of this weather are already being felt in Lincolnshire and Northamptonshire with river flows becoming lower, causing problems for wildlife and river users.
“The Environment Agency have been monitoring the situation and reviewing the range of dry weather indicators, including groundwater levels, river flows and soil conditions.
“It is working with partners across the area, including internal drainage boards and water companies to ensure the situation is managed effectively.
“Abstraction licence holders in the affected areas may receive notice to restrict the amount of water they can take. This may include taking reduced quantities or only abstracting at particular times, depending on local circumstances.”
Examples of businesses with abstraction licences include those in the agricultural and horticultural industry.
Claire Anderson, a drought manager for Environment Agency in Lincolnshire and Northamptonshire, said: “We continue to monitor our key river, groundwater and reservoir sites using telemetry, and are liaising with water companies to understand any emerging concerns.
“We are also working with farmers, businesses and other abstractors to manage water availability and ensure that they get the water they need to be resilient while maintaining our protection of the environment.
“We are closely monitoring the developing incident and produce regular reports on the water situation, available on www.gov.uk.”
