Emfuleni said on Wednesday utility Rand Water had restored at least 75% of water supply, easing shortages that have hit the municipality for months.
Emfuleni however said some areas were still struggling due to burst pipes resulting from ageing infrastructure.
The municipality in the Vaal, south of Johannesburg, has suffered water shortages for months after Rand Water cut supplies over non-payment of bills. Emfuleni owes Rand Water more than R431-million accumulated over the last four years.
On Tuesday, Emfuleni mayor Jacob Khawe led municipality officials to Rand Water’s offices, demanding that water supply be switched back on.
"Water has been restored after Emfuleni Local Municipality had further and robustly engaged Rand Water," the municipality's communications manager Stanley Gaba said.
"Gauteng Premier Makhura and the Executive Mayor Khawe brokered another deal with Rand Water last night, and paid additional R17-million towards servicing the existing debt."
Last December, Emfuleni entered into an agreement with Rand Water to reduce the amount of bulk water purchases from R80-million to a maximum of R60-million a month.
Emfuleni has struggled to pay its arrears, citing "unachieved financial projections".
Gaba said the municipality was appealing to its communities to settle their municipal accounts so that it could continue to provide services, saying residents owed Emfuleni about R5-billion.