The dams in Cape Town have reached a significant milestone in an ongoing battle against severe water shortages in the South African coastal city.

Water levels at the dams have broken the 60% mark for first time since a drought struck parts of the Western Cape province three years ago - placing the much feared Day Zero out of the picture.

It had raised fears Cape Town would be the first city on earth to run out of water, causing widespread panic among residents.

They were braced for the city’s taps to run dry – but it seems there is now reason to celebrate.

This time last year, the dam levels were sitting at about 30%.

Although the City of Cape Town has described the development as "a milestone", stringent water-saving restrictions are to remain.

Cape Town residents are expected to use just 50 litres of water per person per day.

This includes taking two-minute showers.

Officials have said the restrictions will only be lifted if the dams reach between a 80% and 85% storage capacity.