Cordeaux Reservoir near Wollongong topped 70 per cent of capacity, an increase of three-quarters since Friday, when the most intense four-day rain event to hit Greater Sydney since 1990 moved in.

Rains should ease in coming days. Any wild weather is likely to be generated from the remnant low formed from tropical Cyclone Uesi. The tempest, however, will remain well offshore.

As of Wednesday afternoon, Uesi was still a category 2 cyclone, located to the west of New Caledonia, about 1000 kilometres from Australia, Diana Eadie, a bureau forecaster said.

Even once no longer a tropical cyclone, this system will bring strong winds and gales are forecast to develop around Lord Howe Island," she said.

Tropical cyclone will weaken on Thursday as it moves southwards. It is forecast to move directly over Lord Howe Island.Credit:Fiji Meteorological Service

"The cyclone also has the potential to bring large waves and heavy rain with its passage," Ms Eadie said, adding south-east Queensland and eastern NSW would have an increased risk of flooding.

NSW beaches will likely be hammered again. Fresh southerly winds and strong waves could cause coastal erosion, Ms Eadie said.

Beach erosion at Collaroy on February 10.Credit:Getty Images

The recent rains have finally started to reach the very dry regions of inland NSW. Wyangala dam on the Lachlan River has seen its level rise from 1.8 per cent about a week ago to 13 per cent capacity, WaterNSW said. Keepit all but dry since January 2019 has risen to 4.9 per cent capacity.

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Water Minister Melinda Pavey has defended her department's decision to temporarily lift embargoes on pumping water for "a small number" of farmers, allowing them to draw from the Barwon-Darling system.

Embargoes were placed on the North West for pumping and, for the first time in the history of the Murray Darling Basin, flood plain harvesting - to get the water as far down the system as possible, Mrs Pavey said.

However, big rains topping more than 250 millimetres in some locations across the Namoi and Lower Gwydir had resulted in large volumes of overland flow on the floodplains, threatening to cause property damage.

"These suspensions are only temporary and restrictions are expected to be put back in place [on Friday]," she said.

It is a relief to see naturally occurring flows running all the way down the Barwon River from Mungindi to Walgett, likely to replenish town supply weirs at Brewarrina and Bourke and were hopeful even down to Menindee Lakes, Ms Pavey said.

Ms Pavey's office expects flows of 10-30 billion litres will reach the Menindee Lakes system out of the current flows.

Peter Hannam writes on environment issues for The Sydney Morning Herald and The Age.

Matt Bungard is a journalist at The Sydney Morning Herald.

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Another drenching on the way for Sydney as Cyclone Uesi stays offshore - The Sydney Morning Herald