The Catalan government in the northeast of Spain has declared a state of emergency in response to a record-breaking drought. This means the introduction of tough restrictions on the use of water across the region. Guy Hedgco reports now from Catalonia on how it's affecting businesses.

After three years of drought, the Bael's reservoir is at just a fifth of its capacity. It supplies water to Barcelona and surrounding towns. With the average water level in this area's reservoirs falling below 16%, a state of emergency has been triggered in Catalonia.

For the government of Catalonia, and according to the records, we consider it the worst draft for for 100 years or more. The situation of drought affects mainly more than 50% of the Catalan territory, mostly the coastal area, which is also the most populated area with 6 million people.

The state of emergency means that water use is being tightly restricted. Town Halls have to limit the amount of water per inhabitants to 200 liters per day. Swimming pools cannot be refilled, and the stream has cut back water use by a quarter. Those who flout the restrictions will face fines. In addition, the flow of water along several major rivers is being heavily reduced.

In recent years, Catalonia has diversified its water supply, meaning it now depends less on rainfall and more on recycled and desalinated water. However, as the drought deepens, it's having to take some more drastic measures, with the Port of Barcelona, preparing to receive boatloads of water from other parts of the country.

Canaletas is a company that makes and exports fountains for drinking water. It's currently finding ways to reduce water consumption in its factory in Barcelona to ensure it's in line with the new rules. That 25% reduction in water use, I think industry can adapt to it.

Not all, but most industry, at least, if it's for a short time. But if this goes on indefinitely, it's going to be a serious problem.

But the impact could be much greater for rural Catalonia, where livestock farmers must cut water use by half and crop farmers by 80 %. These farmers occupied central Barcelona, protesting at EU farming regulations, but they're also dismayed by the drought and the new water restrictions.

Right now is a moment when you think, either I try and get through this or I will close down my farm. We have to cut the use of water for our crops by 80 %. I am thinking about closing the business down. Only rain can solve this crisis.

But after more than three years of drought, Catalans don't know when it will come. Guy Hedjko, BBC News, Catalonia.