The most likely source of arsenic found in Uralla's water supply is springs feeding the streams entering Kentucky Dam, a council investigation has found.
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"I am pleased to advise that significant progress has been made to optimise our treatment plant processes," Uralla Shire Council's Acting General Manager David Aber said.
"Initial test results show a capacity for significant reduction in the arsenic concentrations."
Further tests will be carried out over the coming days to confirm the results.
"The bottled water alert will remain in place until we are confident that the supply meets the water supply guidelines of less than 0.01mg/L," Mr Aber said.
At this time there is no estimated time frame for lifting the alert.
Mr Aber also said:
- The town water supply is still considered safe for pets and stock to drink.
- Rural residents on tank supplies who have purchased water from the Uralla system are welcome to collect bottled water use it for drinking and food preparation. No testing can be provided and consequently council is asking them to use bottled water and follow the "Do not Drink Alert" as a precautionary measure.
- Bottled water is now being made available from the Invergowrie store.
- Council is monitoring the logistics of bottled water supply to ensure that sufficient stocks are at hand.
Council said the town water supply is safe to use for hand washing, showering, bathing, washing clothes, in the garden, for consumption by pets and washing dishes.
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"It is recommended, as a precautionary measure, that bottled water be used for drinking, food preparation, making ice, cleaning teeth and gargling. Be advised that health effects are very unlikely at the concentration present in Uralla's drinking water," Mr Aber said.
"The patience of our local business owners is very much appreciated and especially those who have volunteered to assist us with the distribution of water."