Carterton District Council believes it has located and fixed the probable source of "low-level" E. coli contamination in its water network.
The council has received two clear tests and is waiting on a third tomorrow before it can make a decision to lift a boil water notice in place.
More information will be released about the contamination source after engineers have completed a review of the remedial works.
A boil water notice was first issued on March 12 after low-level contamination was discovered in two bores which supply water to urban residents.
It was then lifted after three days of clear results, but subsequently re-issued last week when an E. coli reading came back slightly above the acceptable level for New Zealand drinking water standards.