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Thousands of fish are dying, ducks are catching botulism and some species of wildlife are being driven to extinction from some waterways as the impact of drought spreads.
But the Environment Agency said that while wildlife across England and Wales was suffering from the dry conditions, the prospect that people will be forced to draw water from standpipes this summer is now "unlikely" after the exceptionally wet May.
The environmental consequences of the drought are now the agency's main concern.
It reported that low water levels at more 100 sites in England and Wales are starving wildlife of oxygen, causing thousands of fish to die and coating waterways in toxic algal blooms.
Significant numbers of fish deaths from drought have been reported as far north as the River Idle, near Sheffield, and as far west as the River Nadder near Salisbury.
The agency is urging members of the public to report instances of dead or distressed fish to its hotline.
The low oxygen levels have also caused bacteria to flourish, prompting outbreaks of wildfowl botulism on the Bear Brook near Aylesbury and Hook Marsh Lake in Waltham Abbey, north London. So far 10 ducks have died.