One criticism, however, was that the inquiry continued to regard the Havelock North reticulation as vulnerable and posing risks.
While maintaining chlorination would go some way to addressing the risk, the council clearly needed to pursue a programme of assessment and improvement of the reticulation, the report said.
"It is not clear to the Inquiry that HDC's reticulation work is proceeding as quickly as is desirable."
Council chief executive Ross McLeod said HDC was disappointed it was not given the opportunity to respond to these comments before the report was released, including concerns about the installation of UV treatment.
UV treatment was currently being designed and implemented across all the district's water supplies, including Eastbourne St, Mr McLeod said.
"Good progress is being made to strengthen our water network and services and fully address the issues highlighted by Stage 1 of the inquiry.
"The programme in place has us well on the way to meeting many of the Stage 2 recommendations," Mr McLeod said.
Garth Cowie, the independent chair of the HDC water services change programme, said the water services change team and the council were determined to ensure safe drinking water for the community, and work was well underway to achieve this.
This included investing in new water sources, installing high-level treatment on all council bores, installing UV treatment on all supplies, increased testing and improved risk management and legal compliance.