The health warning issued in November for Lake Okaro has now been lifted by the Medical Officer of Health.
Results of water testing by Bay of Plenty Regional Council confirmed the algal bloom had subsided in the lake.
Despite the lifting of the warning, the public should always be cautious for signs of algal blooms if using lakes.
"Algal blooms can develop rapidly and unpredictably and can sometimes produce toxins that are harmful for people as well as animals.
"If the water looks discoloured, has an unusual smell, or has green or brown particles suspended in it then it is best to avoid contact with it," Medical Officer of Health, Dr Phil Shoemack, said.