Tauranga City Council workers have located the break in a key water main which has caused supply issues to Mount Maunganui and Tauranga.

All businesses and residents in Mount Maunganui and Papamoa are being urged to conserve water after a main supply line failed last night.

A key water main, which supplied the Mount and Papamoa area, had failed twice since yesterday evening.

Repairs were underway.

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At 9am, the council said in a statement that repairs of the second water main break were progressing well. The council hoped to have confirmation around midday.

In the meantime, reservoir levels have dropped slightly - Mount Maunganui is at 43 per cent, Mangatawa at 63 per cent and Poplar Lane is holding at 31 per cent. The council said their water team was carefully managing supply across the available reservoirs.

The council request for people in the Mount and Papamoa areas to conserve water remained in place until the all clear was received.

As of 5am this morning, the Mount Maunganui reservoir was at 49 per cent capacity, Mangatawa was at 72 per cent and the Poplar Lane reservoir was at 31 per cent.

These levels were expected to drop quickly as everyone started their day.

The Tauranga City Council did not know how long it would be before the reservoirs could start being refilled. The pipe failure location was proving difficult to access safely.

High water use industries were being contacted this morning.