Homes and businesses at Bandiana have been left without water this morning after a major water main break.
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North East Water said a contractor working on a subdivision in the area had been responsible.
Work is under way to repair the break, which is affecting supply to about 200 homes and businesses including parts of the Homemaker Centre precinct.
North East Water managing director Craig Heiner said the top priority was to restore supply as soon as possible.
"Our staff are working hard to conduct the repair on one of the city's larger water mains", Mr Heiner said.
"We have activated an incident management team which includes notifications to critical customers.
"The team is well on the way to solving this issue and restoring supply, and we will notify customers as soon as this occurs."
Mr Heiner apologised to customers and said a thorough investigation of the incident would start once services are restored.