In the latest report published by SEPA, the Borders joins parts of Aberdeenshire, Tayside, Fife and the Lothians, where businesses that abstract water from the environment are being advised to do so more efficiently.
Groundwater levels are falling and are very low at some monitoring locations, while river flows also remain low for this time of year.
If dry periods continue, the Alert level could rise to Moderate Scarcity where water users will be encouraged to reduce the volume of water they use or temporarily suspend abstractions.
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SEPA is monitoring the situation and coordinating steps to manage water resources in line with Scotland's National Water Scarcity Plan.
Head of Water and Planning at SEPA, Nathan Critchlow-Watton said: "In March this year, SEPA warned that water scarcity conditions could deteriorate quickly if dry weather continues. We are seeing that happen now in the east of Scotland as warning levels increase and expand to more areas each week.
"We have been working with businesses to ensure they have a plan to deal with water scarcity that protects their operations and the environment. This should include carrying out checks to their equipment, considering upcoming water needs and following best practice such as irrigating at night.
"Water is a finite resource, even in Scotland, and pressures on the water environment will only get worse with climate change. By following our advice and working together, we can all play a part to reduce the impacts."
