NSW Health has said the boil water notice for Bemboka can be lifted.
The decision was based on chlorine and turbidity levels across the water supply system and council's management of the system.
The lifting of the boil water notice occurs immediately and water from the tap is now safe to drink and no longer needs to be boiled for any purpose.
The notice was introduced on December 31 due to the impact of the Werri Berri Fire on the village's water supply system.
The water treatment plant was bypassed and raw water was pumped to the village reservoir to assist with firefighting efforts.
Bega Valley Shire Council's treatment operations superintendent of water and sewerage services Wouter VanderMerwe said the treatment plant was operating well and producing high quality water.
He said technical issues and treatment challenges following the bushfires and recent rainfall across burnt catchment areas had taken longer than expected to resolve.
"The water quality of the Bemboka River is improving with lower concentrations of ash, soot, sediment and debris from the bushfires for the treatment plant to deal with," Mr VanderMerwe said.
"The water quality throughout the reticulation network is also very good following a complete flushing of the water mains recently.
"The water is now safe to drink directly from the tap."