LYNN – After the driest August in recent memory, Lynn officials are keeping close watch on reservoir levels as Gloucester imposes a ban on water use.Although regional conditions have not reached drought stage, dozens of Massachusetts communities have issued water restrictions. In Gloucester, residents have been prohibited from any sort of outdoor water use.The situation was not as dire in Lynn, where a drought watch remains in effect as of Sept. 2.”We’re at 65 percent capacity,” said Rick Dawe, superintendent of water supply and treatment at the Lynn Water & Sewer Commission. “In our terms, we’re in a drought watch. We basically monitor the water levels more carefully but there are no restrictions on the public.”If levels in the city’s drinking water supply system decrease to 56 percent, residents would be notified through the local newspaper that voluntary restrictions are in place, Dawe said Thursday.”That could change at any time, but if we get normal rainfall during the fall, we’ll be alright,” he said, noting that rain is part of the weather forecast for Sunday.According to the National Weather Forecast, the region is experiencing the second driest August on record. The lack of precipitation has lowered water levels in lakes and rivers, and substantially increased the risk of forest fires.Firefighters in Salem, Peabody and Saugus have been battling brushfires for more than a week, but the persistent flames are moving underground in many areas and only a heavy soaking is likely to extinguish them, Saugus Fire Chief James Blanchard said.State officials closed hiking trails in the Blue Hills Reservation Wednesday after a brush fire spread to 10 acres. Forest fire warden David Celino of the Department of Conservation and Reservation noted that 35 to 59 new fires have been reported each day this week.While some homeowners are concerned about the browning of their lawn, farmers are facing more serious problems because the dry conditions could damage or reduce the size of late-season crops, especially sweet corn.The city of Boston recorded a mere 0.66 inches of rainfall last month, about 2.7 inches below average and the lowest total for August since 1883.Dozens of communities, including those on the North Shore like Revere, Swampscott, Saugus and Nahant, depend on the Massachusetts Water Resources Authority (MWRA) for drinking water. The water supply is mainly drawn from the Quabbin Reservoir in Belchertown and the Wachusett Reservoir in Clinton, both of which are at 95 percent capacity or above, according to MWRA spokesman Michael Ralph.Chances are slim that MWRA communities would face a water ban this summer, Ralph said.