A glass of Cromwell water will contain fewer "extras" - less lime and no reddish-brown sediment - once a new supply source is approved next year.
Central Otago District Council utility service manager Peter Greenwood said a suitable new source had been located after more than a month of test drilling.
Cromwell residents were told earlier this year that sediment in the domestic water supply was attributed to oxidised manganese.
The level was well within safe drinking water limits, but the Cromwell Community Board resolved to investigate new sources of water.
Mr Greenwood said the new source of water was close to the edge of Lake Dunstan and the council would have to get approval from Land Information New Zealand and the Otago Regional Council before drilling a bore.
Construction would begin as soon as those consents were received and he hoped the new bore would be operational by autumn.
"The advantage with this new water source is that it produces softer water than the current bore, so there will be less lime in the water, " he said.
The supply would be a mixture of groundwater and lake water and the signs looked good for it to remain manganese-free.
