Officials in Holyrood are zeroing in on the source of a water problem in the eastern Newfoundland town.

They believe their system is losing water somewhere along Sir Albert Wells Drive, a road that leads to the local yacht club and the shores of Conception Bay.

Town official Gary Corbett says it's likely the main six-inch water line in that area has a leak, or could even be severed.

He said when water to that line was stopped, the town's overall water supply replenished.

Corbett said they'll run water through the trouble area today to try to pinpoint the source of the problem.

About 100 homes are still experiencing low water pressure or, in some case, no water at all.

The town of Holyrood said water in its 10-metre-high water tank began to vanish earlier this week.