Level two water restrictions will remain in place despite the weekend deluge that has caused dam levels to rise by 29.5 per cent in a week.
However, residents and businesses have escaped more severe level three restrictions, which the government was looking at introducing quickly unless there was significant rain.
NSW Water Minister Melinda Pavey said there would be no "knee-jerk decision" on easing restrictions.
"We remain focused on building dams, investing in recycled water and ensuring the expansion of the desalination plant is shelf ready should we need to build it," she said.
Combined water storage in Sydney was at 71.4 per cent on Tuesday.
Sydney's parched dams have had a boost with Warragamba Dam now at more than 60 per cent capacity after jumping from 43 per cent a week ago.
Woronora Dam is at 60.9 per cent , a rise of 26.6 per cent in a week.
The deluge has revived creeks and streams that had been either dry or reduced to a trickle.
More rain, in the form of showers, is forecast every day for Sydney over the next week.
The Bureau of Meteorology has warned there could be storms over the next three days.