Cradle Mountain Water staff are flushing pipes and conducting further tests at Rosebery this week in a bid to eliminate lead from the town's water supply.
Residents will have to get their water from public hydrants for at least another week.
The Tasmanian Public and Environmental Health Network describes the situation as “third world”.
West Coast Mayor Darryl Gerrity says the cause remains something of a mystery, but it's believed to be pipes rather than the water itself.
Julia Gillard's back in Tasmania today, the second trip here in the past month, and has announced 70 more call centre jobs for Hobart, this time in the Northern suburbs at Derwent Park.
Also on this trip, the PM's performed the official opening of a new health clinic in Hobart.
Julia Gillard's also added another 7 million dollars to the forest peace deal money, bringing the total to 100 million, and is fast-tracking the funding over 4 years instead of 15