Due to a prolonged drought, water levels in Lake Moondarra have become very low. In April 2013, it was forecast that Lake Moondarra would be reduced to 40% of capacity by July 2013, which would trigger the need to supply additional water from Lake Julius. The increased cost to the Mount Isa Council for water was estimated to be $800,000 per year ($114 each for 7000 households). Water restrictions in the town were escalated in April 2013 to reduce water consumption. Boating on Lake Moondarra would be restricted if water levels reduced to 20% for safety reasons as the lower water levels would reveal obstructions. The fish in the lake will be at risk if Lake Moondarra falls to 10% capacity.