The Nelson Mandela Bay Executive Mayor, Athol Trollip said there was a "great indication" that residents were doing everything in their power to save water as the drought continued to bite.
Trollip was speaking on the DMB on Algoa FM on Wednesday morning about the metro's water crisis among other issues.
He said the municipality would be forced to implement the next phase of punitive water restrictions if consumption did not drop by 15%.
Trollip said the metro's water reserves were still critically low despite residents efforts to save water.
The Nelson Mandela Bay council approved phase B water restrictions in December last year.
Trollip said if the municipality moves to phase C water will become very expensive.
"I would like to commend the people of Nelson Mandela Bay, I really do not want to take the decision to go on onto the next phase which will be phase c of water restrictions.
Where the cost of water becomes very expensive, I have already had some people writing to me to say that their water costs are now exceeding their rates and services costs. If we go into phase C it's going to be more expensive" he said.
The metro's Infratructure, Electricity and Engineering Head, Annette Lovemore indicated last year that under phase C tariff hikes, consumers who used more than 24 kilolitres a month could pay up to R59 for each kilolitre over the limit.
Trollip also issued a warning to residents about filling up their swimming pools.
"You have no right to fill a swimming pool when people could possibly run out of water. There are ways, you can put up tanks and you can divert water into your swimming pool but you are not allowed to fill your swimming pool" he said.
Trollip also reiterated that selling borehole water was illegal adding that residents with borehole water in their property may only use it for domestic purposes.
"If it you use it for anything else you need a licence so the debate about selling borehole water shouldn't really be there. You are not allowed to do it that's the law. The law is to prevent over abstraction of water" he said.
The NMB Municipality issued a stern warning to businesses selling borehole and municipal water to fill up swimming pools.
Mayoral Committee member, Anette Lovemore said last year that they would receive a R1000 fine or have their water supply cut off.
