The iconic Bondi Icebergs swimming pool has been drained to donate millions of litres of water to Australia's drought-affected farmers.

The famous swimming spot at the southern end of Bondi beach was this morning emptied of its water and transformed into "the country's largest kitchen sink" as part of the #FinishWaterWaste initiative to help battling rural communities.

Australia is currently in the grips of the most severe drought on-record , with record-high temperatures and rapidly declining water storages in the past 12 months.

Bondi Beach's iconic Icebergs swimming pool has been drained in a bid to donate millions of litres of water to drought-ravaed rural communities. (Supplied)

The famous pool was emptied and turned into Australia's 'largest kitchen sink' to demonstrate how people can save water. (Supplied)

Finish Australia and Rural Aid, who teamed up to drain the pool and place a large running tap inside, said the move shows how much water Australians can save by being smarter about how they use it.

The initiative will also seek to deliver up to 6.8 million litres of water to drought-affected rural communities around the country.

Finish has also promised to donate water to Australians that need it via Rural Aid for every social media user who uses the #FinishWaterWaste hashtag in online posts.

The initiative will also seek to deliver up to 6.8 million litres of water to drought-affected rural communities around the country. (Supplied)

Finish has also promised to donate water to Australians that need it via Rural Aid for every social media user who uses the #FinishWaterWaste hashtag in online posts. (Supplied)

The drought has caused the driest soils and thirstiest livestock in 120 years, and the higher temperatures have put an increased strain on water stores in multiple states and territories.

Every state and territory has seen a decline in water storages over the past 12 months.

Some Australian towns are on the brink of running out of water after years of below average rainfall.

Australia is currently in the grips of the most severe drought on-record, with record-high temperatures and rapidly declining water storages in the past 12 months. (AAP)

The Bureau of Meteorology's climate outlook for August to October shows the prospects for good rainfall are limited across Australia – meaning widespread higher than average rain is unlikely.