Rees Hotel chief executive Mark Rose said people had been eagerly awaiting the end of the boil water notice, lifted yesterday after nearly three months.
Staff rushed around following the Queenstown Lakes District Council announcement, removing warnings from rooms and telling guests the water was fine again.
"We’re moving forward, so it’s awesome.
"There’s an audible relief from our guests, which is fabulous as well."
The hotel had been bringing in up to 250 litres a day, and time had dragged while the restriction was in place.
Residents in Queenstown and Frankton were told to boil their water from mid-September following confirmed cases of illness caused by the parasite cryptosporidium.
Queenstown Lakes District Mayor Glyn Lewers said the requirements of the compliance order issued by water regulator Taumata Arowai had now been met.
"[This] means everyone is able to return to using water straight from the tap for the weekend," he said.
"Our infrastructure team has installed new UV reactors at Two Mile water treatment plant and these are now fully operational.
"All of the live network reservoirs have been inspected and cleaned, and the local network has been flushed."
It had been a trying time, and he thanked people for the patience.
Following the lifting of the notice the council planned to provide an update on its work to install UV treatment to remaining plants around the district, along with the permanent solution for Two Mile.
