Extensive testing has been undertaken by MidCoast Water over the past two days at locations across Gloucester, along with flushing to remove the higher chlorinated water from the town water supply.

Customers in the Cemetery Rd area may still experience some isolated chlorine taste and odour issues.

"We do not believe that at any stage chlorine levels posed a risk to health," a MidCoast Water spokeswoman said.

"The warning to not drink the water was issued as a precautionary measure while we gathered further information on the situation.

"Chlorine limits set by the National Health and Medical Research Council are an aesthetic level and much higher levels have previously been experienced without any adverse health impacts.

"However, we do acknowledge the smell and taste of the water was not acceptable to our customers."

Representatives from MidCoast Water including the chair, deputy chair and executive staff will be available in Gloucester tomorrow morning at the Meeting Place in Denison St between 9am and noon.

MidCoast Water has engaged independent external consultants Hunter H2O to undertake a full investigation into the incident.

Any members of the public interested in contributing to the independent investigation into the incident can email their concerns to investigations@midcoastwater.com.au

12PM (THURSDAY) UPDATE: MidCoast Water will be available to discuss the contamination of the town's water supply at the Meeting Place tomorrow. 

MidCoast Water chair Cr Tony Summers, deputy chair Cr Aled Hoggett and executive staff will be at the Meeting Place on Denison St from 9am to noon tomorrow, March 27 to talk to residents.

11.30AM (THURSDAY): The Roundabout Inn was one of the businesses affected by the contamination of Gloucester's water supply.

Manager Adrian Carruthers shot this video at about 4.40pm on Wednesday afternoon as he conducted a test on the pH and chlorine levels of his tap water using a pool testing kit.

Below is a picture Adrian took of a test he conducted earlier in the day when the chlorine content of the water was at its highest.

11AM (THURSDAY): Not all schools in Gloucester were informed of the contamination of the town's water supply yesterday it has emerged, with MidCoast Water admitting they failed to contact St Joseph's Primary.

The school posted this message on its Facebook page late yesterday: 

A spokeswoman for MidCoast Water apologised for the oversight.

"We did inadvertently miss St Joseph’s Gloucester - it simply didn’t show up on our clerical list we were working from," she said.

"We did have contact with the school late yesterday when they called and brought it to our attention. We apologise to the school and families."

10.30AM (THURSDAY) UPDATE: Water consultancy firm Hunter H2O will lead the investigation into the contamination of Gloucester's town water supply.

MidCoast Water announced this morning the Newcastle-based firm had been hired to lead the independent investigation into how and why the contamination occurred.

Meanwhile, the MidCoast Water chairman and executive team will visit Gloucester tomorrow to talk with the community about the contamination incident.

Times and venues will be available on the MidCoast Water website www.midcoastwater.com.au

Water main flushing started at 6.30am in parts of Gloucester this morning as chlorine levels continue to stabilise across the town, MidCoast Water said.

"Testing this morning has indicated chlorine has returned to normal levels in the hospital area and western side of town," a MidCoast Water spokeswoman said.

"Problems may still be experienced in the northern and eastern parts of town, in the Ravenshaw and Tyrell street areas.

"Customers are once again reminded the water is safe for use. However, anyone who feels they have health concerns is urged to seek medical advice."

Copies of Hunter H20's  draft report into the water contamination will be provided to all regulators for their comments and the report will then be released publicly.

No other water supplies have been affected by the issues in Gloucester.

MidCoast Water has been in contact with NSW Health, NSW Office of Water and the Environmental Protection Authority (EPA) throughout the incident.

MidCoast Water will be providing a $50 rebate on the next water account to every customer supplied by the Gloucester water supply scheme for the inconvenience caused by the outage and to offset water charges due to internal flushing.

Any commercial customers who feel they experienced significant financial loss as a direct result of the outage are asked to contact our customer service centre on 1300 133 455.

A further update will be provided at 2.30pm

9AM (THURSDAY) UPDATE: Water main flushing is continuing in parts of Gloucester this morning.

MidCoast Water said customers could be assured the tap water was safe to use and will continue to improve today.

The service provider has been in contact with NSW Health, the NSW Office of Water and the Environmental Protection Authority (EPA) throughout the incident.

MidCoast Water is undertaking an in-depth internal investigation into the causes of the incident and the response.

The service provider will provide a $50 rebate on the next water account to every customer supplied by the Gloucester water supply scheme for the inconvenience caused by the outage and to offset water charges due to internal flushing.

Any commercial customers who feel they experienced significant financial loss as a direct result of the outage are asked to contact our customer service centre on 1300 133 455.

Representatives from MidCoast Water will be in Gloucester tomorrow (Friday) morning to discuss any issues. Times and venues will be available on the MidCoast Water website www.midcoastwater.com.au

4.30PM UPDATE: Gloucester residents are advised the town water supply is now safe to drink with current chlorine levels posing taste and odour issues only, MidCoast Water said.

"Chlorine readings in all three Gloucester reservoirs have returned to normal levels, however, chlorine readings do remain high in the network in the Tyrell St area," a spokeswoman for MidCoast Water said.

"MidCoast Water operators are continuing to flush this part of the network and chlorine levels are reducing. Flushing will continue until normal test readings are found in all parts of the network.

"Gloucester residents are requested to flush their house pipes for at least 10 minutes before using water this evening.

"This will assist MidCoast Water in purging pockets of the network and ensure the water is sourced from the mains and not internal pipes."

A further update will be issued at 6pm.

3PM UPDATE: MIDCOAST Water says tap water in Gloucester is still not safe to drink.

The water provider said higher than normal chlorine levels are being experienced in the Gloucester water supply.

"This appears to be due to an equipment failure. Staff have currently flushed one third of the water supply network and are expected to flush the remaining parts of the system over the next two to three hours," a spokeswoman said.

"While it is not expected that high chlorine levels would have any adverse effects, our precautionary advice continues to be not to drink the water until notified otherwise.

"A further advisory will be made at 4pm."

1.30PM: Several businesses in Gloucester have been forced to close due to the water situation.

Roadies Café issued this statement via its Facebook page:

"Due to the advice from MidCoast Water regarding the water contamination we have been advised that it is not safe for human consumption. We have decided to close early today. Our apologies for any inconvenience. Hopefully all is back on track tomorrow!"

1PM UPDATE: MIDCOAST Water has said tap water in Gloucester is not safe to drink.

The service provider sent out this urgent message a short time ago:

"Gloucester residents are advised an overdose of chlorine has occurred and as a precautionary measure the water should not be consumed until further notice. Caution is recommended for anyone with skin sensitivities," a spokeswoman said.

MidCoast Water said it would provide further updates at 2pm but had contacted the hospital and local schools and preschools and would be providing bottled water to those services.

The service provider said it was investigating how and why the water had become contaminated.

9AM: Gloucester locals have been taking to Facebook to complain about the quality of the water.

“Please excuse us with our ice and post mix today considering that MidCoast Water had a malfunction with chlorine today and didn’t tell us till it was through everything. Grrrr!” the Roundabout Inn posted on its Facebook feed late on Tuesday.

“I’m not exaggerating, it is really strong stuff coming through. At least your toilet will get a good clean. Ha.”

Others were complaining of burning eyes.

“(My husband) just showered … and smells like he’s been swimming in the public pool. His eyes were burning afterward too so careful bathing the kids,” Alicia Edwards posted on the Gloucester buy, swap and sell Facebook page.

“Does everyone's town tap water taste like bleach? Ugh. My hands smell from washing them! I’m sure the rain stirred things up but I think someone used the wrong measuring cup,” Tess Nolan wrote on the same page.

The chlorine content of the water was allegedly so strong it killed a tank of pet fish.

“We did our weekly clean of our fish tank filter and filled up our tank and all of our five fish were dead minutes later. We’ve had fish for three years,” Carrisa Wiblin posted.

A MidCoast Water spokeswoman said fish owners were advised to refrain from cleaning their tanks with town water.

"Any level of chlorine is not advised for fish tanks. Town water will kill fish whatever the level and is not advised for use in tanks," the spokeswoman said.