Hundreds of households are without water or have low pressure, and a local primary and pre-school have closed after a water main burst.
Modbury Primary and Pre-school, which have about 200 pupils, closed after the burst was reported at about 11:00 BST.
South West Water said, external some customers in the south Devon town, which has about 1,500 inhabitants, "may experience lower water pressure than usual or a loss of supply while we undertake emergency repairs".
Repairs would take four to five hours, it added.
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Burst Water Main Cuts Supply for Hundreds in Modbury