Raetihi water is now good for showers and laundry.
The decision was made by the Medical Officer of Health, but water for drinking and cooking has still not been given the all-clear.
Ruapehu District Council anticipates reticulated water will be given the all-clear for drinking on Monday when the test results for samples taken on Thursday are expected.
Residents have been advised that they should complete the flushing of their plumbing before using the water for showers and laundry.
Tuesday's heavy rain saw the level of the Makotuku Stream and Mangawhero River rise by several metres and flood the wastewater treatment plants of Raetihi and Ohakune.