SOUTHERN Downs mayor Tracy Dobie said the decision to cut the water supply from Karara was final after residents pleaded with her to consider other options.

Cr Dobie expressed grave concerns for the health of Karara residents if they continue to use the non-potable water for washing, drinking and bathing, which she said was already making some residents sick.

"People have died in other parts of Australia from people ingesting contaminated water and we are very conscious this water is not for domestic use and it was never intended for domestic use," the Mayor said.

When asked whether the council would be liable if residents fell ill from incorrect use of the Karara water, the mayor said the matter would be for a court to decide.

Cr Dobie expressed her concerns at a community meeting in Karara on Tuesday, where residents have been told their water connection will be replaced with a 5000 gallon rain-water tank and one-off fill.

Karara woman Tracey Long said the meeting didn't provide the answers she wanted.

"We didn't really resolve anything, all they said is that it is due to health reasons and lack of maintenance which is why they are shutting off the water," she said.

Ms Long and other residents have asked the council to consider installing a floating foot valve to fix the problem of dirty, "disgusting" water that is pumped from Canal Creek.

The water connection was donated to the Warwick Shire Council by Queensland Rail approximately 30 years ago and was intended for washing livestock, flushing toilets and watering gardens.

But Cr Dobie said over the years, Karara residents had connected the water into their homes and were using it for washing and bathing.

"Of course I am concerned if a resident gets sick and there were anecdotal examples of residents who have been drinking the water and have been unwell," Cr Dobie said.

But with tanks completely dry in a severe drought, Canal Creek the is the only water some residents have.

Mother-of-two Kerry Wilson is suffering from breast cancer and she has to buy bottled drinking water from Warwick, 50 kilometres away.

"We do use the water for washing because our tanks are completely dry and we have nothing else," she said.

"I do not use the town water to cook in or in my kettle."

Mrs Wilson said the stress of losing the water and the prospect of having to pay for water deliveries was the last thing she needed while going through chemotherapy.

"I already have a financial burden going to Toowoomba for chemo to add water in is just huge it really puts huge pressure on my family."

She and other Karara residents have asked the council to consider other options that would ensure a reliable supply of water to their properties.

"I told her you can put stuff in the water that kills 99 per cent of bacteria and they virtually ignored me," Ms Long said.

Cr Dobie said council officers would consult with Karara residents individually to determine a long-term solution.

"It was very useful for me to hear their views and I will now discuss with councillors what we can do to allay some of their concerns," Cr Dobie said.

"We have committed to engaging one-on-one with the residents about the solution that works best for them."

But the Mayor said the decision to cut off the water supply was final.

"Councillors have made a decision that water that is currently begin pumped out of canal creek won't continue."