Rotorua's wastewater treatment plant is back operating within capacity after a weather bomb caused a pond plant to overflow into Puarenga Stream.
But warning signage is still in place.
A warning was put in place yesterday afternoon for people to stay out of the water at Sulphur Bay, Lake Rotorua, following the spill.
More than 100mm of rain has fallen in the Rotorua district over the past 48 hours, following 88.2mm of rainfall last Tuesday and Wednesday.
A council spokeswoman said as results from water sample testing would not be available for a few days, the signage asking people not to go into the water in the Sulphur Bay area would remain in place until it got the all-clear.