The suspicious yellow tinge has now gone from Whangamata's water supply but officials say it was nothing to worry about anyway.
Thames Coromandel District Council has blamed the discolouration on all the extra people in the Coromandel for the holiday and iron oxide in one of its bores.
Communications manager Laurna White said there has been a huge demand on the bores.
"That was because of the increased usage around the area of that particular source of water which meant that there was a higher level of iron coming through the water. That has now been rectified with the filtration system."
White said it was never a health risk, and the problem has now been fixed.
"We've got a huge increase in visitor numbers so we're very aware of the drinking water issue and we want to make it perfectly clear that the drinking water is absolutely safe to drink."
She said water restrictions are in place across the region.