Extremely hot weather and a lack of rain have caused water supplies to be cut to 490 houses and only seven of the town's 31 wells still have water.
Water is being delivered to residents and 13 water bowsers have been set up around the town.
The region last had rain in May and experts say this is the worst drought in the region for 20 years.
Restrictions have been in place since August, but September 5 the local mayor declared a state of emergency in the drought-hit area, as the Tuapse River, which supplies the region with water, has almost dried up.
The authorities have also introduced water saving regimes, including closing down the town's car washes and restricting water supplies for companies.