Karen Robertson, of Napier, said she attended the march because she had suffered from headaches, nausea and dry skin since chlorine was put in the water. She was also concerned about long-term effects.
"I'd like to see the council subsidise people to get household filters."
Money is being spent on other things in Napier such as the aquarium expansion when it could be used to upgrade infrastructure to ensure ratepayers have fresh, clean water, she said.
Napier resident Clare-Louise Gerbault said she hoped the march would encourage council to communicate with the community better about water issues.
"I'm disappointed in the lack of transparency in the Napier City Council.
"I'm tired of hearing how much money is being wasted on other projects."
Ms Gerbault said she had been drinking unchlorinated Hawke's Bay water for 54 years and had never had any issues but when chlorine was put in she started to feel ill.
Ken Burgess said he had to spend $600 seeing a skin specialist only to be told he had a reaction to chlorine in the water.
Leigh Burnell said she would like to see an independent investigator look into Napier's water situation.
Protesters marched from Clive Square to Napier Soundshell chanting and holding signs.
Last Monday council implemented a level four restriction on water use, meaning no outdoor or garden water use at all, after a warm weekend saw the city's reservoirs drop critically low.
Many residents found black water pouring from their taps following this, which was due to two bores being urgently brought online resulting in water going through the network in different directions, causing some sediment to dislodge.
Last week chlorine was added to the Otatara reservoir, which services about 200 Napier households, after a positive E.coli reading.
Chlorine has been added to the city's water supply twice this year after positive E.coli readings.
Napier's water is drawn from the Heretaunga aquifer, and dispersed through a reticulated water supply. There are 10 wells drawing the water, 8 reservoirs and 18 pump stations.
NCC chief executive Wayne Jack and mayor Bill Dalton declined to comment.