Recent rainfall has not been enough for recovery in the east, and conditions have continued to get drier in north-east Aberdeenshire.
Alert level requires businesses which rely on water from the environment to start taking action to ensure they are being efficient, including checks of their equipment and abstracting at night to minimise evaporation.
Multiple industries in Scotland rely on a consistent water resource for their operations including farming, whisky production, golf and hydropower energy.
There continues to be a split for water scarcity in Scotland, with most of the west experiencing normal conditions and the east at an Early Warning stage.
Head of Water and Planning at SEPA, Nathan Critchlow-Watton, said: “The deterioration in the east is due to a combination of dry ground conditions and low river flows.
“We continue to monitor the situation closely and manage water resources in line with Scotland's National Water Scarcity Plan.
“Businesses can play their part to protect the environment by following our advice on using water efficiently and having a plan for when resources start to deplete.
“Water scarcity will become a more regular occurrence in Scotland as a result of climate change, but we’re here to help and minimise the impacts on both the environment and key sectors across the country.”
More information about water scarcity and the latest report can be found at www.sepa.org.uk/waterscarcity.