The National Drought Group, made up of regulators, government officials, water companies and agricultural bodies, made the decision after a meeting on Monday.
A total of 45 million people are now living in a drought area in England, with more than 27 million facing water use restrictions.
It comes after an exceptionally hot and dry summer, with heatwave conditions set to return for many this week.
National Drought Group chairman, Tony Grayling, said drought conditions would continue to worsen until “significant and sustained rainfall”.
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