Towns along the Murray River are being warned their drinking water may soon develop a bad taste and odour due to high levels of blue-green algae in Lake Hume.
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North East Water is anticipating customers in towns including Wodonga, Bellbridge, Yarrawonga and Wahgunyah to be effected.
In a statement released on Wednesday, North East Water said the blue-green algae bloom could enter the Murray River and flow downstream effecting drinking water systems.
Executive operations John Day said blue-green algae produces a naturally occurring compound called Geosmin in raw water.
"This Geosmin is the real culprit which can cause an earthy taste and odour in treated tap water," he said.
"When the compound is at very high levels, it can be difficult for our treatment processes to remove all the taste and odour.
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"Although the water may be unpleasant to taste, it is still safe to consume and meets all Australian Drinking Water Guidelines.
"We will use everything in our toolbox to treat this issue, including powdered activated carbon to help reduce the taste and odour.
"This process is generally quite effective at reducing the effects, however we are detecting higher concentrations of Geosmin than usual this year.
"It's believed the current blue-green algae bloom in Lake Hume is caused by high levels of nutrients entering the system from catchments effected by last year's bushfires."
Mr Day said the "climate extremes" the region is experiencing continue to push their treatment systems.
"We will continue to monitor, adjust and trial different processes to help address the issue," he said.
"Our customers in Tallangatta have been subjected to the same issue for several weeks now.
"I understand this is not an ideal situation and apologise to those who are affected."