A temporary pipe was installed on Friday to restore limited water flow to the Waihola reservoir.
Clutha District Council service delivery group manager Jules Witt said a small amount of water was in the reservoir which supplied Waihola.
However ``as fast as it fills up, it is going out again to fill customers' tanks''.
He said the the Waihola reservoir was relatively small, with a capacity of 190cu m.
It supplied about 200 properties in Waihola.
Most of those were required to have two days' supply in their own water tanks.
``At this time of year ... this much storage would be likely to last many people a week or more.''
Customers on the northern part of the North Bruce Rural Water Scheme were also affected by the water restrictions as they were served by the same burst pipe.
Mr Witt said investigations carried out over the past week resulted in four pipes being repaired in the area.
Investigative work was ongoing to see if all the issues had been resolved.
A water tanker was also parked at the Waihola service station for free supply.
Waihola Motors co-owner Lindsay Anderton said the water tanker had barely been used since it was parked outside the fuel station on Saturday.
Not many people in the town were aware it was there or for what purpose.
However, most people in Waihola had enough in reserve in their water tanks so they did not need it.
Waihola Holiday Park owner Pete Michelle said it went without water on Saturday but supply returned on Sunday evening.
The water restrictions had not affected him or customers much, apart from those who had go out to use the bathroom at other businesses in the area.
Mr Witt advised them to continue to conserve water in the meantime.
It was unclear what caused the broken pipe or the leakage but there was no evidence to suggest it was caused by the earthquake last week.
The water tanker would remain in Waihola until it was emptied or all issues were resolved.