"When we supply water from Boar Bush, we are able to treat it but, at the Boar Bush reservoir, the water is stored, so it has taste and smell issues, which created a negative reaction in the Featherston community," Mr Sloan said.
In early July, residents were asked to conserve water after a plant breakdown when emergency supplies were not used.
Mr Sloan says the three incidents have highlighted a need for something to be done about the water supply and the council is looking at its options.
He said the council was looking at a range of options to stop problems from occurring. A stand-alone supply for Featherston was the best way forward but depended on the availability of funding.
The council has applied to the Ministry of Health for a subsidy for a stand-alone supply but is also looking at enhancing the current supplies.
Mr Sloan said a plan should be in place by the end of the year.