Logging being carried out around the dams which feed Marton's town water supply has been suspended because of the risk on sediment run-off.
Crews began felling trees on behalf of the Rangitikei District Council at the Marton B and C dams on May 9 but were forced to stop just three days later.
The logging was suspended on May 12 because of the risk of sediment runoff exacerbated by heavy rain, a report by council chief executive Ross McNeil said.
That same week the Marton water became discoloured and odorous with residents complaining it was coffee-coloured and undrinkable.
The area received three days of heavy rainfall in early May.
There was 37mm on May 1 followed by more than 50mm over May 12 and 13.
Council said testing showed the water was safe to drink and it added activated carbon to address odour and taste issues with its water supply.
Mr McNeil said heavy rain and warmer weather had caused problems with algae in the supply and staff would continue to monitor it.
The Chronicle has requested a copy of the council's erosion and sediment control plan for the logging which it says will be reviewed before the operation recommences.
The logging crews and equipment have been moved off site and the report said harvesting would recommence later in the year "when ground conditions are more suitable".
Mr McNeil believed a resource consent was not required for the logging under Horizons Regional council's One Plan.