With key supplier Zhuhai facing woes of its own and Macau having drinking water in its reservoirs for just 10 days, rationing is a real possibility. That would have a crippling effect on businesses as well as major visitor- geared events on Macau's calendar.

A severe drought affecting a large section of southern China has caused salinity levels to rise in the Pearl River Delta, which in turn has caused problems in pumping systems.

The situation does not appear anywhere as near as threatening for Hong Kong. Here, authorities are pinning their hopes on a "water even in a drought" deal that was struck last year with Guangdong.

Macau has been urged to cut back on its water use by officials in neighboring Zhuhai, where reservoirs are at a 10-year low. If Zhuhai cannot help with more water, then Macau must start rationing.

The Zhuhai government has already banned the use of water for non- essential activities such as street cleaning and watering greenery.

The deputy mayor of Zhuhai, Huo Rongyin, said the river's water is too salty due to less rainfall than usual, and pumps cannot provide water suitable for drinking for his city and Macau.

But Macau legislator Au Kam-san said the government has not alerted lawmakers about the possibility of water rationing - a turnoff that could have a disastrous effect on the city.

"The government has not told us of any contingency plans," he said. "Salty water has troubled Macau for a long time, and the government has only been able to come up short-term plans, like buying bottled water.

"Macau is wasting a lot of drinking water in many areas."

Tourism and hotels will be severely affected if there is rationing, Au added. Also in line to be hurt are the 56th Macau Grand Prix on November 12 and the Macau International Marathon in early December.

Hoteliers are meanwhile trying to discover how bad the situation could become. A spokeswoman for the Venetian Macao-Resort-Hotel said its executives are trying to check with government departments about its water supply.

"We have always been careful about the use the water in our resort," she added.

In Hong Kong, a spokeswoman for the Water Supplies Department said officials are in close contact with authorities in Guangdong to ensure the water supply is not affected.

Hong Kong signed an agreement with Guangdong last year for the supply of Dongjiang River water until 2012, even under extreme drought conditions. About 639 million cubic meters of Dongjiang waters have been supplied to Hong Kong up to October 31 this year.

Local reservoirs are holding about 48 million cubic meters of water.