Wairoa District Council is upgrading its water supply at Tuai "as we speak" - answering criticism from the Green Party suggesting the supply had faecal contamination.
The council's chief executive Peter Freeman said the public water at Tuai had been an issue for many years but the expense of upgrading prevented action resolving the problem up until now.
"It is something we inherited from the Government 25 years ago. It's always been a boiled water situation there but it will be fixed when we get the upgrades in place.
"We are installing a filtration system as we speak and other work by using a Ministry of Health grant."
Mr Freeman said it would cost $240,000 to complete the upgrade, $185,000 from the ministry's grant and the balance from Wairoa ratepayers.
A report released on drinking water in New Zealand showed supplies servicing 13,000 people in Hawke's Bay had issues with faecal contamination, the Green Party said in a press statement.
The report showed five supplies in Hawke's Bay had issues with E.Coli contamination which was an indicator of faecal contamination. The five included three supplies in the Hastings district, at Havelock North, Whirinaki and Waimarama. There was one in Central Hawke's Bay at Porangahau and the one at Tuai.
Mr Freeman said faecal contamination did not automatically indicate there was human faeces in the water.
The council's acting chief executive Shawn McKinley said an investigation was launched into the water supply at Porangahau following the 2011/12 water report.
"We issued notices to people out there, hand delivered to every property. There was one tap we weren't sure of so we replaced that."