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Affected areas include Nyanga, Gugulethu, and New Crossroads townships.
Officials from the City of Cape Town said technicians worked through-out the night to try and fix the pipe system.
Its spokesperson Farouk Robertson said while they expect to restore water supply soon, residents will not be left high and dry.
He said residents will have access to three water tanks – one at the Gugulethu Day Hospital in the NY-3 area, and another two that will be directed by councillors in those areas.
(Edited by Thato Motaung)