Oxfordshire is one step closer to a drought order after Thames Water made an application for the emergency measure in London.

The announcement was made yesterday, the same day another leak was spotted in an Oxford street.

June Tracz, 74, spotted the leaking main in the road near her home in Ingle Close, Headington, yesterday (Friday) and could not believe that Thames Water was asking for a drought order when so much water was being wasted in leaks.

She said: "It makes you laugh. We have to pay so much.

"They put up the water rates all the time, but nothing gets done quickly."

A spokesman for Thames Water said the leak had already been assessed, and would be fixed within hours.

The company was heavily criticised in Parliament this week for losing a third of its supply in leaks.

Thames Water insists it is dealing with the problem, by spending £1bn on fixing problem pipes.

The Thames Valley area, which includes Oxfordshire and neighbouring counties, has escaped inclusion in the drought order, because rainfall here has been higher.

But a spokesman for Thames Water warned that the county could still face a clampdown later in the year.

He said: "It depends completely on the weather.

"If we have lots of rain and the situation doesn't get worse, a drought order is not likely, but if the situation gets worse, it is a possibility."

While the current ban outlaws the use of hosepipes and sprinklers in private gardens and allotments, a drought order - granted by the Government's Department of the Environment, Food and Rural Affairs (Defra) - is much more wide-ranging.

As well as restricting the use of water by businesses and public bodies, it would allow the water company to take more water from rivers.

Jeremy Pelczer, chief executive of Thames Water, said the request for a drought order was a precautionary measure, which would not necessarily be used.

He said: "May's above average rainfall dampened demand, boosted river flows, and allowed us to recharge reservoirs.

"But the underlying situation remains serious with groundwater levels in most areas very low.

"So we believe it is sensible to apply for a drought order now."