Parched Qld town celebrates rain

Long-awaited rain has saved a northwest Queensland community from extreme water restrictions and possible evacuation, but the town's mayor says the drought's far from over.

Some 50mm of rain has fallen in Cloncurry since Saturday night, almost filling the town's dam.

The first decent rain event in two years has pushed water levels at Chinaman Creek Dam, the town's main water supply, up to 74 per cent.

It had been hovering about 15 per cent.

The increased water levels have spared residents from level six water restrictions that would have required them to boil water for drinking.

"The community is safe at the moment," Mayor Andrew Daniels said, adding that farmers desperately needed more rain.

The severe drought had forced the council to make evacuation plans in the event the town ran bone dry.

Mr Daniels says the region desperately needs a new dam and is calling for the federal government to fund one at Cave Hill, about 20km upstream from Cloncurry.

The dam is the only way to secure water supply for the town and mining development in the region, he said.