ATLANTA -- Georgia environmental officials are relaxing some of the strict water restrictions imposed last year despite concerns that the epic drought gripping the state could grow worse.

Carol Couch, Georgia's top environmental official, called off an order Tuesday that required utilities in 61 counties in drought-stricken north Georgia to reduce water use by 10 percent.

She also loosened water restrictions through parts of south and central Georgia, and launched a new plan that could allow some counties in the northern part of the state to apply for exemptions.

Recent rainfall throughout the state and other signs the drought was loosening helped spur the moves, but Couch said she was also convinced that many of Georgia's communities are now more prepared for the consequences of a drought.

"If we're prepared, we should be able to weather drought conditions," she said.

But the sudden policy shift has raised concern from environmentalists and others who fear the state could be loosening water restrictions just as the drought grows worse.

"We cannot afford to find ourselves in another water crisis caused by the state's irresponsible mismanagement of water resources when the dog days of summer come this year," said April Ingle of the Georgia Water Coalition.

There's little doubt the drought's grip on the state has weakened.

Recent rainfall has helped replenish reservoirs and streams that months ago had dried to a trickle. It's also chipped away at conditions that left most of the state in an "exceptional" drought -- the government's worst category -- in December. Now no part of the state is classified in that category.

Yet, as frustrated forecasters say, there's no way to tell whether the change is firm or a fluke. And there are plenty of signs that the drought is far from over.

Atlanta's main water supply, Lake Lanier, is still more than 13 feet below normal levels. Few parts of north Georgia are receiving normal levels of rainfall, and there's little hope that the arrival of summer will improve the situation.

"Barring tropical weather, drought conditions are expected to worsen through October 2008," said state climatologist David Stooksbury. "That's the fly in the ointment," he said, referring to the threat of severe weather, "but it's a fly most of us would be happy to take."

Couch's announcement on Tuesday reverses some of the restrictions the state imposed last year when they worried worsening drought conditions could threaten Georgia's water supply.

Virtually all outdoor watering was banned in the parched northern part of the state, and utilities there were ordered to cut water use by 10 percent. Residents in the rest of the state were restricted to outdoor watering only three days a week.

Gov. Sonny Perdue also launched a legal battle against the Corps of Engineers, which manages regional water sources, and led a public prayer vigil for rain on the steps of the Capitol.

The changes announced Tuesday still limit residents through much of south Georgia to outdoor watering three days a week, but now allow them to water their lawns between 4 p.m. and midnight.

Six counties in central Georgia where outdoor watering is tightly restricted banned will be allowed limited outdoor watering. And Couch's policy shift also means that north Georgia counties that do not rely upon Lake Lanier for their water could ask the state for looser rules.

Couch said she recognizes the drought will continue through the summer, and conceded it could grow worse. But she said Georgia communities are better able to deal with it, even with a loosening of tight restrictions.

"We are better prepared this year," said Couch.