Water was sent gushing from a fire hydrant, on the corner of Market Square, outside The County Hotel, in Lytham.
The incident happened at about 5.30pm, on Thursday and was captured in photographs by several onlookers, as the water shot into the air.
United Utilities confirmed the jet of water had come from the fire hydrant, which appeared to have been tampered with.
A spokesman said: “In order to switch off the hydrant, we had to interrupt local water supplies for a few minutes that evening.
“Hydrant abuse is an issue we have to contend with from time-to-time, especially in warmer weather. It’s extremely irresponsible behaviour, as it can cause disruption to local homes, and potentially, reduce water pressure for firefighters.
“We work closely with local councils and the police to tackle hydrant abuse and Lancashire Police are aware of this incident.”
United Utilities said the incident was not connected to roadworks currently going on in the area.