Western and Central towns in New South Wales are facing a crisis in their water supplies prompting an emergency plan by water authorities.

Dubbo, Nyngan and Cobar are between some of the towns that will have to brace for their water entitlements to be reduced around a 10% which is expected to affect the agricultural production.

Executive Director of the Murray-Darling Basin authority says since July of 2018, inflows to the River Murray System have remained in the driest 7 percent of records.