BLUE-GREEN algae has been detected in the drinking water supplied to Tamworth, Moonbi and Kootingal.
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Residents have reported issues with the odour and taste of the water.
Tamworth Regional Council is monitoring the issue, and confirmed in a statement that blue-green algae has been detected in the water source.
"We are currently treating the water and during this time you may experience an earthy taste and odour which should disappear in a few days' time," it reads.
"The water is not harmful to consume and still meets the Australian Drinking Water Guidelines."
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Blue-green algae is a type of microscopic, algae-like bacteria that can form visible 'blooms' which can be toxic to humans and animals.
At higher levels, blue-green algae can cause skin irritation, mild respiratory effects and symptoms similar to hayfever.
It can also cause vomiting, diarrhoea and headaches at excessive levels.
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