The algal bloom at Virginia Lake is not toxic but the Wanganui District Council is still warning visitors to keep clear of the water there.
Signs went up around Virginia Lake just before Christmas, asking people to wash their hands if they came into contact with the water.
Council infrastructure manager Mark Hughes said testing had shown that the blue-green bloom was not toxic. Further testing will be done later this week, he said.
Mr Hughes said this year algal blooms have been much worse and widespread, with the whole country affected and several waterways closed to the public.
"However, Virginia Lake is not used for recreational swimming, boating, fishing or dog walking, so there is not a public health issue.