Queenstown Lakes District Council has lifted the boil water notice for remaining parts of the resort town following the cryptosporidium outbreak.
The notice has been in place since mid- September.
Mayor Glyn Lewers said the news followed confirmation by Taumata Arowai that requirements in a compliance order issued following the cryptosporidium had been met.
"I'm delighted to say that the huge effort by Council officers and contractors since the compliance order was put in place on 20 September means everyone is able to return to using water straight from the tap for the weekend, he said.
"Our infrastructure team has installed new UV reactors at Two Mile water treatment plant and these are now fully operational. All of the live network reservoirs have been inspected and cleaned, and the local network has been flushed."
Lewers thanked residents, visitors and businesses in the affected areas "for their patience and co-operation during what has been a trying time for all".
He also thanked the contractors who worked to get the job done quickly.
The council would provide an update on its work to install UV treatment to remaining plants around the district, along with the permanent solution for Two Mile, once the boil water notice lifted.