SA Water has agreed Orroroo's water supply is unpleasant to drink, but says the water meets health standards.
Residents have long complained the ground water is highly saline and corrodes their pipes and taps.
SA Water chief executive John Ringham said the problem was more likely to be due to a build-up of material in bore water than corrosion.
"Corrosivity is generally related to the acidity of the water and it's true that rainwater is generally more acidic than the water that's coming through the bore into Orroroo," he said.
"What you potentially get from the bore water at Orroroo is a scaling or a deposit of materials from that bore water rather then necessarily a corrosion."
Orroroo-Carrieton Council said the area desperately needed a desalination plant but it was beyond the resources of council alone.