The blue-green algal density, which at one point was twice the density recommended for swimming, has dropped significantly.
"It was very low again this week and all toxin species were below detection levels from the toxin test," said Barry Gilliland, regional council water spokesman.
He said the Medical Officer of Health had agreed the health-risk warning be dropped to amber which means "caution advised".
"Blue-green algae density can change quite quickly, so the usual precautionary advice is still relevant."
Gilliland advised checking the lake for surface scum which should be avoided.
"Blue-green algae often lie toward the surface, so lake use should reduce cell density by stirring it into more of the lake volume," he said.
The lake is next to the Lakelands Holiday Park, the former Scoutlands property, which has new owners Darryl and Jackie Dowman.
At the weekend Jackie Dowman said the lake was the clearest it had looked in weeks. She keeps holiday-makers up to date with results of the water testing done by Horizons.
It is believed some visitors had cut their time at the lake short because of the warnings, but Darryl Dowman said: "Everybody's in cruise mode and it's really good."
