The treatment plant providing water for Te Aroha in Waikato is experiencing ongoing temporary shut-downs as the filtration system struggles to cope with sediment washed in by recent heavy rain.
Matamata-Piako mayor Adrienne Wilcock said the tap water is currently safe but urged people to save water.
"We haven't run out of water and we don't intend to run out of water. They'll keep the plant running, they're just looking for solutions to make sure we can manage that."
But Wilcock said if people do not conserve water the town would run out as the plant could not currently produce the amount of water the town would usually consume.
Matamata-Piako District Council said it recommends residents consider going out of town to a friend's house or workplace to shower.
It asked residents not to use dishwashers, washing machines, baths, or water outside the house.
This meant turning off garden times, not washing the car or water blasting.
The famous Te Aroha Mineral Spas has also had to close for the day.
Water tankers are available in the town for drinking water at the Silver Fern Farms Event Centre and on Whitaker Street, outside Te Aroha Domain.
Residents are asked to bring clean containers to fill.