The move comes less than two weeks after Gov. Jerry Brown officially declared an end to the state's drought.
MWD officials voted Tuesday to lift the restrictions saying the effort is made possible by this season's storms and the public's water conservation.
Water flowing from the snowpack in the southern Sierra Nevada has enabled the MWD to fill its storage facilities, and the agency now has roughly a year's water supply in storage and anticipates storing about 800,000 acre-feet of water this year.
However, officials say continued conservation efforts are needed to maintain reserves.
The MWD provides water to about 19 million people in six counties.
City News Service contributed to this report.