Currently the level of water in the dam is 8.5 metres. It normally runs at 13 metres.
"This problem is having a significant affect on the Alliance Meat Works," Dave Watson, council's group manager of plant and property, said.
"They have their own filtration system, but when they are double shifting, it takes time for the water to pass through their filtration."
A drone has been sent up to check the lines coming from the intake of the river, with one branch showing clear water flowing through, while the second branch, where council is currently drawing our water from, is cloudy.
"Using council's drone is better than (people) bush bashing their way up," Watson said.
Slips in the Ruahine Ranges are the suspected cause of the problem.
"We're hoping and praying it clears up soon," Watson said.
"We're taking water well below our consent limits because it's so turbid."
Councillor Ernie Christison said he had been working on farms upstream and believed there was a big slip "somewhere".
"The water up there is brown," he said.
Watson said council was considering engaging an engineer familiar with intake galleries to advise on remedial or extension work to the existing intake gallery.
There is also the option of hiring a containerised plant and dropping it in at the intake gallery, at a cost of $20,000 a week for three or four weeks.
This would allow council to harvest a clean water supply up to the resource consent limit and feed the surplus back into the impounded supply.
"We need to bring the impound supply up to full, as we haven't got a buffer (if something goes wrong)," council chief executive Blair King said.