We haven't hand watered for over 12 months (with the exception of Grandma's therapeutic watering session while staying here last summer) and it hasn't made ANY difference. It's not that we have a particularly water-wise garden, in fact we have a very traditional lawn and flower bed arrangement.
Despite the drought elsewhere Sydney coastal suburbs get enough rain to keep any established garden happily growing. Nevertheless, we had not had any rain for several weeks until this morning and the garden was looking a little dry. I was just about to collect grey water to throw on the lawn and then IT RAINED.
Having a no watering policy makes life a little simpler and certainly makes us appreciate the rain when we get it.