About half of Queenstown's supply network has now been deemed safe to drink.
The drinking water regulator, Taumata Arowai, says the council can lift the boil water notice for the area served by the Kelvin Heights plant.
That means about 20,000 people living in Frankton, Shotover Country, Lake Hayes Estate and Quail Rise can drink straight from the tap again.
However, the boil water notice is still in force for about 25,000 residents served by the Two Mile plant - that includes the CBD, Fernhill, and Sunshine Bay.
Queenstown Lakes' District Council's general manager infrastructure Tony Avery spoke to Corin Dann.
