Wannon Water has advised it is monitoring the levels of naturally occurring algae in raw water storages.
It is affecting the taste and odour of Terang and Warrnambool’s drinking water supplies.
Managing director Andrew Jeffers said the water remains safe to drink.
Algae levels in the raw water supply at the Ewens Hill storage and some Warrnambool storages have increased as a result of seasonal conditions.
“This is not uncommon at this time of year as algae thrives in warm, dry conditions,” he said.
“Similar events occurred within the Warrnambool catchment last month, and are occurring at a number of other locations across Victoria at present.”
Mr Jeffers said any material, such as algae and suspended particles, is removed from the raw water during treatment at both the Terang and Warrnambool water treatment plants.
“Although some customers may potentially notice a temporary earthy taste or odour in the coming days, the water is safe to drink and complies with the Australian Drinking Water Guidelines,” Mr Jeffers said.
He said the issue at Terang was not related to the Cobrico peat fire.