Compensation could be provided after a parasite discovered in the water supply led to a health warning.
United Utilities have urged residents to boil their drinking water after traces of the bug cryptosporidium – a microscopic parasite which can cause stomach cramps and diarrhoea - was found at Franklaw Water treatment plant in Catterall, near Garstang.
The warning was given on Thursday and is set to remain in place into next week.
Gary Dixon, domestic retail director for United Utilities, said the firm would look at compensation once the water supply was back to normal.
He said: “We are looking at the incident, we are focusing on resolving the problems that we have got.
“The priority for us is to get these supplies back to normal conditions, normal quality levels, and then we will look at compensation.”
Investigations are underway into how the bug, commonly found in animals such as livestock, found its way into water at the treatment works.
Mr Dixon said test results showed the amount of cryptosporidium in the water had reduced, but people are still advised to boil water before drinking it.
“The very little trace of cryptosporidium we have had in the water is even smaller now so we are making good progress, but we are not out of the woods yet. We have got more to do,” he said.