The government has been urged to draw up a strategy to ensure farmers can continue to water their crops as the UK braces for drought conditions until October.
Last month was the driest July for England since 1935, and the driest on record for East Anglia, southeast and southern England, statistics show.
England saw an average of 23.1mm rainfall, the Met Office says, while south-east and central southern regions saw an average of just 5.0mm rainfall.
Most of the country now has low river levels, with significant consequences for the farming industry, nature and wildlife.
Now the Liberal Democrats has called on the government to declare a national drought emergency, as well as tougher action on water firms.
Once declared, a Cabinet Minister should host a weekly televised press conference to update the public on guidance to limit water supply after mixed messages in recent weeks.
Representatives of the water companies should also attend the press conference to update the public on how many, if any at all, leaks have been reduced during the drought.
The party also called for a strategy to ensure farmers can water their crops, and resources directed to parts of the country which are struggling most with water supply.
Liberal Democrat environment spokesperson, Tim Farron said ministers needed to 'get a grip' by declaring a national drought emergency and giving themselves power to move resources.
"Water companies are the reason we are in this mess now after they sold off reservoirs and refused to fix their creaking infrastructure," Mr Farron said.
"Their gross negligence is set to inflict hosepipe ban misery on millions. The public has lost all faith in them and it's clear we can’t trust them to ensure Britain has enough water this summer."
"A failure to act now will see rivers dry up, farmers unable to water their crops, and millions of people facing unnecessary restrictions."
