Italy has declared a state of emergency in the River Po area, where roughly a third of the country's agricultural production comes from, as it suffers its worst drought in 70 years.

The government decree will allow authorities to bypass legislative processes and take action immediately if deemed necessary. Such measures could include imposing water rationing for homes and businesses.

The Po is Italy's longest river which runs for more than 650 kilometers through the country's north. However, many stretches have dried up and farmers say the water flow is so weak that sea water is coming inland and destroying their crops.

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The emergency measures will apply to lands that border the Po and the water basins of the eastern Alps.

It has also introduced a state of emergency in five northern regions - Emilia-Romagna, Friuli Venezia Giulia, Lombardy, Piedmont and Veneto - pledging funds of an initial 36.5 million euros ($38 million) to help them tackle the water shortage.

"The state of emergency is aimed at managing the current situation with extraordinary means and powers, relief and assistance to the affected population," the government said.

It added that further measures might be taken to deal with the drought, which water authorities say is having an increasingly detrimental effect on central Italy after an extremely dry winter and spring was followed by an exceptional early summer heatwave.

Prime Minister Mario Draghi is also reportedly considering creating a commissioner to coordinate the drought response.

Italy to appoint drought commissioner

The Italian government is poised to appoint a special commissioner to deal with the country's drought crisis.

The Po River, which is the country's longest and most important source of natural water, is at just a quarter of its capacity.

According to President of the Po District Civil Protection Authority, Giampaolo Zucchi, time is running out.

"It is a very serious situation because it has persisted for many months, from a dry autumn last year to a winter with little snow and a very hot spring," he said. "This year we had 120 days without rain..."

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Italy's most important natural water source is drying up