Water restrictions in Westport and Carters Beach are set to ease.
Homes and businesses have been limited to essential use only, after part of Westport's ailing water supply network failed several months ago.
Water has been pumped to storage tanks from a nearby reservoir, where water levels are now improving.
The Buller District Council's Mike Duff said restrictions still apply, but the situation is now less serious.
He said the impact of water restrictions was huge and had put many sectors of the community under stress.
The council will monitor the reservoir level daily.