Recreational water use at Macandrew Bay can resume after latest tests show bacteria levels within normal ranges.
The Dunedin City Council advised against recreational use last Friday after tests showed high levels of bacteria in the water.
The Otago Regional Council received results yesterday from a test carried out on Monday, which showed low bacteria levels, environmental information and science director Dr John Threlfall said.
"It's good news."
Further testing would be carried out today as the council planned to test twice a week for the rest of the school holidays, Dr Threlfall said.
However, the source of the bacteria remained unknown.
In an attempt to locate a source, testing of the creek was carried out on Tuesday. Results were not available yesterday.
The Dunedin City Council and Public Health South would continue to monitor the situation, medical officer of health Dr Marion Poore said.