The boil water notice in Akaroa and Takamātua has now been lifted.
A warning has been in place since February 12 after a number of dead animals were found in a nearby reservoir.
A Christchurch City Council spokesperson said water is now safe to drink without boiling.
However, Level 4 water restrictions remain in place throughout Banks Peninsula due to critically low stream flows.
This means there is still a ban on hoses, sprinklers and garden systems.
Several small dead animals were found in the reservoir on February 9 during a routine check.
Testing confirmed there was enough chlorine in the water to kill bacteria, but there was still a possible protozoa risk which chlorine will not kill.
The medical officer of health said water used for drinking, food preparation, utensil washing, brushing teeth or ice should be boiled until further notice.