The Gisborne District Council says the threat of water rationing in the city has diminished - provided residents continue to minimise demand.
The North Island city has a critical water shortage after a 70-metre-long landslip burst a pipe at the city's main reservoir on Monday night.
The Gisborne District Council says the target was to reduce water use to less than 14,000 cubic metres a day, and that was achieved on Thursday.
It says the broken water pipe should be repaired and the water flowing again by the middle of next week.
However, the council says it is vital that Gisborne people keep water use to a minimum to avoid emptying the town reservoirs, as contaminants could get sucked into the empty pipes and would mean residents would have to boil their water.
The council says even when the pipe is fixed, residents will have to be careful with water use for the rest of summer.