Residents in Pongaroa are still having to boil their water after the urban and rural supply failed an E.coli test more than a week ago.
"We have gone out to work with the Pongaroa water supply group to make sure the chlorine equipment is working as it should and there is now more testing of the supply," Peter Wimsett, Tararua District Council's manager of strategy and district development said.
"With Ministry of Health funding to put in a new water plant closer to the town our next step, will be going door-to-door to find out what each household requires from that new supply."
Council secured funding from the Ministry for up to $393,000 for the upgrade of Pongaroa's water supply, with the estimated total cost of the project $510,000.
Meanwhile, the village's residents are also being warned that roof-sourced water is untreated, with care needed when using this as an alternative source of drinking water.