Matata residents are being warned of a planned water supply shutdown this weekend to allow for the commissioning of a new reservoir in the town.

The new reservoir will see the town's water storage capacity expanded by more than 70 per cent.

Matata residents will be without water from 10am to 2pm on Saturday.

The shutdown will affect all resident between 10am and 2pm on Saturday.

Whakatane District Council says the shutdown follows the installation of a new storage tank above Division Street and work to stabilise the installation site.

The town's existing reservoir capacity of 250 cubic metres and with the new tank in operation, total storage capacity will rise to 430 cubic metres, which will provide Matata with at least 24 hours storage at normal consumption rates.

'The cost of installation, including site stabilisation work, is approximately $300,000, with over 80 percent of the project costs being funded by a Ministry of Health subsidy,” says a statement from Council.

The project will be completed by the end of June.

'The Council apologises for any inconvenience caused by the service disruption and thanks consumers for their cooperation.”