Port Townsend leader Andrew Lloyd Webber has said there will be no new funding for the lead plant, with the town facing “major problems”.
The company responsible for the site in Port Talbot, where Lead-Free Port Town is located, said it was committed to continuing to work with the Government to ensure the project continued.
In a statement, the company said it had worked with the Health and Safety Executive (HSE) to develop a new plan that would ensure Port Townsville remains safe.
“Lead can cause serious health and safety issues, including lead poisoning, which is why we are working with the HSE to develop an action plan that will protect Port Town’s residents and staff from the harmful effects of lead,” the company added.
The announcement comes just days after the head of the HSI, David Rochford, told the BBC that the lead removal process at the site had not been up to the standard required.
He said the process could take up to six months.
“The problem is that we have to have this process at Port Towns and that means the people working at the plant can’t go out to the site,” he said.
Mr Rochfords comments came after the HSHE, the Government agency responsible for running the plant, said that it was working with lead removal company Lead Safe to “improve” the process at its site.
“We are currently in the process of assessing how we can provide greater support to the Lead Removal Process at the Port Town site,” a spokesman for the HSSI said.
“In the meantime, we are making ongoing progress to deliver a safer environment for our people, staff and visitors.”
The lead removal is being conducted by a subsidiary of the lead supplier Cenovus.
The Government has committed $25 million to support the work, which includes building a new pipeline from Port Town to the town.
Port Town mayor Tim Hickey said the ban was an “unnecessary distraction”.
“I’m glad that we’ve taken this decision because I think it’s really bad timing and it’s a bad distraction,” he told RTE.
“It’s really sad that people in Port Town can’t be able to go to the waterworks.”
Mr Hickey added that the town was not looking to move away from lead.
“I don’t want people to get hurt and I don’t think that’s a good thing, especially with the children and young people coming to Port Town,” he added.