"We are just concerned that we are going to be short of water later in the year," says Osoyoos mayor Sue McKortoff.
Home owners will only be allowed to water their lawns twice a week, and the use of hoses to wash vehicles, boats or buildings will be banned.
Agriculture and most business will not be affected.
City officials are worried about water use because of a much lower than normal snow pack this year, and a drought in neighbouring Washington State.
Okanagan Basin Water Board Executive Director Anna Warwick Sears applauds the move, especially considering Osoyoos is located in Canada's only true desert.
"The predictions have been for a long hot summer, and when there is a long hot summer, there is much more water demand," says Warwick.
The water restrictions go into effect next Friday.