California decided Wednesday to allow hundreds of local water districts to set their own conservation goals after a wet winter eased the five-year drought in some parts of the state.

The new approach lifts a statewide conservation order enacted last year that requires at least a 20 percent savings. Beginning next month, districts serving nearly 40 million Californians will compare water supply and demand with the assumption that dry conditions will stretch for three years. The districts would then set savings goals through January and report their calculations to the state.