Utility company Southern Water is saving 32 million gallons of water a day thanks to a leak-busting team working around the clock.

The saving is enough to serve 385,000 homes or a city almost the combined size of Brighton and Hove and Southampton.

But there is still enough water leaking out of the system to fill more than 36 Olympic-sized swimming pools a day, according to the latest national leakage report by industry regulator Ofwat.

The report reveals Southern Water is meeting targets for stopping leaks following one of the driest winters in 100 years.

The South is experiencing the worst drought since 1976, after eight consecutive months of below-average rainfall, and the Environment Agency has called on water companies to take drought action "sooner rather than later".

A hosepipe ban is already in force across the county.

Southern Water's team of 100 leak-busters, who monitor 13,000km of water mains, have more than halved the amount of water lost through leaking pipes.

Jon Crooke, of Southern Water, said: "Finding leaks can often involve difficult detective work.

"The leaks are usually hidden underground and can be found only using specialist monitoring equipment. Near-silence is needed to hear the leaks so a lot of work has to be carried out at night when traffic noise is less of an intrusion.

"Our detectives are hard-working and highly motivated.

"They know their work is of vital importance and that our customers want reassurance we are doing all we can to cut down on leaks."

The team has been helped by public-spirited customers who have made 15,000 calls in the last year to Southern Water's freephone line to identify leaks.

Philip Fletcher, director general of water services at Ofwat, said: "I am pleased total leakage has fallen. I now have the power to fine a failing water company.

"I should not hesitate to use these powers if I thought a company was not complying with its duties or was exposing customers to worsening security of water supplies by failing to achieve cost-effective levels of leakage."

Southern Water is waiting to hear the result of its application for a drought order at Weir Wood Reservoir, which would reduce the amount of water that usually flows from the reservoir into the River Medway.