South West Water (SWW) incorrectly told nearly 30 households in Devon that they could stop boiling their water after a tank was infected with a parasite.
Those given the false message are being offered an additional £75 compensation, with SWW apologising for the error.
The company has blamed their digital mapping system for the incorrect letter, which comes amid an outbreak of cryptosporidiosis, an illness linked to diarrhoea.
SWW lifted boiling restrictions for around 14,000 homes in the Brixham area, after quality monitoring results found no traces of the parasite which can cause sickness.
However, 28 households received a second letter hours later which told them that cryptosporidium was still in the area’s water supply and that residents should continue to boil their water.
A spokesperson for SWW told the Telegraph: “Following our announcement yesterday that we were reducing the boil water notice area in Brixham, we hand-delivered notices to all customers to let them know of the changes and to confirm whether or not they were still in the affected area.
“Unfortunately, a very small number of customers did receive two notices with conflicting information. This was caused due to a technical issue with our digital mapping system.
“We also had a small number of customers in a localised area who, in error, received the wrong notice advising them that their property was no longer covered by the notice.
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“We have been contacting those customers and carrying out visits to their properties to quickly clarify their situation and provide the correct guidance.
“We are sorry about this, and those customers will be receiving an additional £75 in compensation in recognition of the confusion caused.”
The water firm is still urging 2,500 properties in Hillhead, upper parts of Brixham and Kingswear to continue boiling water before drinking it.
SWW said they would not lift the notice in place for these homes “until we and our public health partners are completely satisfied it is safe to do so”.
There are 46 confirmed cases of cryptosporidiosis in Brixham, according to the UK Health Security Agency (UKHSA).
Meanwhile, over 100 more people have reported symptoms, including diarrhoea and vomiting.
The water company said it believes the parasite could have entered supplies through a damaged pipe in a field containing animal faeces.
SWW added that a contaminated tank at Hillhead reservoir was drained overnight and “thoroughly cleaned”.
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