This comes at the time council's former laboratory technician and whistle blower Jo Hardie says a new pipeline has been built for some residents due to "non-potable water".

"I was happy to hear from one of the residents of Old Mica Creek Rd who was told by the mayor they will be getting a pipeline with town water to their properties and that council have also finally put up 'non-potable water' signs," Ms Hardie said.

The North West Star asked Council if the new pipeline was to fix the problem.

In a written response Mayor Slade did not directly answer the question but instead spoke about what actions had been taken.

"On Wednesday June 3, a complaint was given to the Mayor and Councillors regarding the alleged misreporting of Mount Isa's drinking water supply by council staff," Cr Slade said.

"As Mayor, I have enacted statutory powers to permit direct engagement with Council staff to address these allegations. This has enabled the new Acting Engineering Director to report directly to myself regarding our city's water supply and management. The new Acting Engineering Director comes to us from Cairns with a background in water and local government."

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Cr Slade said the allegations were forwarded to the appropriate state government bodies for investigation, which although she did not name is understood to be the Crime and Corruption Commission.

"All complaints will be diligently investigated under the guidelines of the statutory bodies whilst affording procedural fairness against any person/s named in the allegations," she said.

"Council is in regular contact with Department of Natural Resources, Mines and Energy and Queensland Health to ensure the quality of the reticulated water supply is monitored and modified treatment or restrictions acted on as appropriate. Council has engaged an independent water specialist to review and test water quality throughout the reticulation network and Council."

Cr Slade said the Council's intention was to bring the community more information as soon as she is confident it will not impact on the investigation.

Member for Traeger Robbie Katter said the allegations were very serious.

"This is concerning not just as a member representing the area but also as a resident." Mr Katter said.

"It's vitally important to get high visibility on this and if there is a problem, to fix it straight away.

"I am seeking further information and will not be letting anything go without thorough consideration."

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