UPDATED 6.30pm Havelock North businesses struggling from the gastro bug outbreak will be getting a share of $200,000.

LISTEN ABOVE: Havelock North business owner Liv Reynolds speaks to Larry Williams

The Government and the Hastings District Council are putting up $100,000 each for local businesses, following the contamination of its water supply.

This is on top of the $10,000 already given to the Havelock North Business Association, and the Work and Income emergency payments people can apply for.

Hastings mayor Lawrence Yule said they'll be meeting business owners this afternoon to work out a reasonable way to divide the kitty.

Ratepayers are also getting a $57 credit on their accounts, in recognition that they shouldn't have to pay for the water that's made them sick.

The announcement was made at a press conference in Havelock North attended by Craig Foss, the Minister for Small Business and MP for Tukituki, and the Mayor of Hastings Lawrence Yule.

Mr Yule said: "The Havelock North business community have had a tough time as a result of the water contamination.  We are committed to putting steps in place to ensure local businesses are supported..

"Havelock North village has many small, owner operator businesses who are a vital and important part of our community. I encourage everyone to continue to look out for their neighbours and actively support our local businesses" said Mayor Yule.

Hastings District Council will establish a promotional fund with the allocated government funding to be managed through the Havelock North Business Association.

Hastings District Council will work with the Havelock North Business Association and local business owners to determine the most appropriate and effective use of these funds. Full details will be announced next week.

"Two weeks ago the village was nearly empty - our business owners, their staff and customers either too unwell to venture out or too busy caring for sick loved ones," Mr Foss said.

"Havelock North has long been known as a clean, beautiful place to visit with world-class fresh produce and friendly locals. This funding will help bolster Havelock North's reputation as a top destination in a region popular with both domestic and international tourists.

"It will also help assist with a speedy economic recovery, particularly for the village's many small locally owned and operated businesses.

"The money will be allocated to a promotional fund established by the Hastings District Council, which is the body responsible for providing safe drinking water and therefore supporting the community through this outbreak," he said.

Business owner Liv Reynolds, who runs a number of restaurants and cafes in Havelock North, says some people can't wait and need the money right now.

"Those, I guess, that are in really dire situations at the moment. There are some that are seriously affected and are on the brink of closing. We need to make sure that they get immediate action and that this isn't just an announcement that will sit and wait and we'll figure out how to split it."

Hastings Mayor Lawrence Yule's performance, and that of his council, has been subject to fierce criticism over the way locals were notified of the problem.

Now there's additional scrutiny as tensions emerge between the Hastings District Council and the Regional Council.

But Labour, and Napier MP, Stuart Nash thinks Mr Yule's performed well.

"I've sat down and looked at this from a very objective stand point, spoken to all the key players and do believe that both the Hawke's Bay DHB, Dr Kevin Snee and Lawrence have done a good job."