Unfortunately, when the Cairns Regional Council started doing tests of the reservoirs -something the previous Council had not done - low levels of E.coli were discovered. Despite huge efforts by Council staff to clean all the reservoirs the tests have come back 25 times showing E.coli is still present.

In August 2008 the State government implemented a new standard that permits NO E.coli in any water supply. Queensland Health, consequently, asked that the Council take immediate action to protect public health.

On 25 May 2009 chlorine was added to the Port Douglas water supply, in the Craiglee and Flagstaff Hill 2 reservoirs, as a temporary measure. This will enable Council to complete an independent investigation, using two experienced NSW companies, into the operations of the system and the quality of water.

Council had to make this move to avoid the possibility of people getting sick from the water; and also to prevent Council officers being fined for failing to provide safe water.

Other than Craiglee and Flagstaff Hill 2, all other reservoirs in the Douglas region remain un-chlorinated.  The Rocky Point reservoir is temporarily off-line for works to improve water quality and there have been no problems at all with the Mossman supply.