"The broken pipes will be recovered from the spill site and tested, and the cause of the breakage investigated," the spokeswoman said.
The road closure on Tongariro St has now been shifted south to allow greater vehicle access and parking by the shops on the lakefront.
The lakefront continues to be closed from the intersection with Ruapehu St.
Businesses are still open and operating as usual.
The council spokeswoman said they expected the clean-up of the contaminated beachfront to begin this weekend or on Monday.
"The council is working closely with Tūwharetoa Māori Trust Board and Waikato Regional Council on the most efficient methodology to clean the beachfront spill site and lake floor in that area."
A rāhui restricts public access to the spill site. The tourism businesses on the lakefront and down the Waikato River remain open for business but are modifying their offerings where necessary to take account of the rāhui.
The district is expecting an influx of visitors and holiday home owners over the upcoming school holidays. The popular Malcolm Flowers Insurances Taupō Winter Festival also started earlier this week. Festival director Nicola Carter said last week all 32 of the festival events would go ahead as planned.
Top tips for saving water
• Toilet flushing – If it's yellow, let if mellow. Flush during off-peak periods.
• Showers, baths – Take a short shower.
• Laundry – Minimise if possible or do off-peak.
• Dish washing – Minimise water use. Wash dishes in a bucket if possible and dispose of grey water in the garden if you can.
• Peak times to try and reduce water use are 8.30am-10.30am, and 8pm-9pm.