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São Paulo state water utility Sabesp denies that it is carrying out water rationing, though it admits lowering water pressure.
Reports of water shutoffs, especially at night, have emerged throughout state capital São Paulo in recent months.
In a release, Sabesp president Dilma Pena said water rationing implies cutting off 100% of water pressure.
"What we do have is a lack of water in specific areas, mainly high-altitude areas, very far from reservoirs, and households with many people," she said.
"There is a lowering of the network's pressure, which is affecting 1% to 2% of the population," Pena said, adding that water rationing would pose a risk to the company's networks, as re-establishing pressure after a 100%-shutdown could burst pipelines.
On Friday, the state's largest water supply system, Cantareira, was operating at 5.1% of its capacity. On the same date last year, it was operating at 39.4%.