The boil water notice was brought in on 9 April after Coliform bacteria and low levels of E Coli were detected in test results.
The Grey District Council says it received a revised direction from the water regulator, Taumata Arowai earlier this week.
It said checks of the water treatment facility yesterday and this morning determined the council now complies with the requirements.
The source of the contamination is still not known, and the investigation is continuing.
Council group manager operations Kurtin Perrin-Smith said the council is considering all potential areas of concern in its overall investigation.
Mayor Tania Gibson said it had been stressful for the community and council, and thanked everyone for their patience.
"We know it hasn't been easy. We are very relieved."
She said looking for the source of the contamination had been like looking for a needle in a haystack.
On Wednesday, Gibson said their water had tested clear for five days.
She said there had also been no reports of sickness as a result of the water contamination.
