Dynes Transport general delivery manager Jamie Harvey said it was dry in Dunedin and throughout the South, and there was an ongoing demand for water delivery to houses on tank supply.
Federated Farmers Southland president Chris Dillon said farmers were taking the summer weather in their stride.
Eastern and southern areas were drier than usual, although the north of the region was traditionally dry, he said.
If there was no rain soon it could start to become concerning.
However, a good spring meant there was lots of supplementary feed for stock, he said.
Federated Farmers Otago president Mark Patterson also said a lot of supplementary feed had been made, and farmers were not concerned by the weather.
While the run-up to Christmas had been good, a hot, dry summer was expected.
"We’re certainly drying out," Mr Patterson said.
Niwa information shows South Island hot spots are located on Banks Peninsula, in southern Canterbury and coastal Otago and Southland.
Hot spots in the eastern and lower South Island are likely to strengthen and expand, the data shows.
Low rainfall caused soil moisture to decrease moderately last week, with high pressure resulting in more dry weather and further decreases in soil moisture levels this week.
