The operator of a waste plant in north Essex said it was investigating after complaints from people nearby experiencing a lack of water.
Paul Thorogood, a local Green Party councillor, said "hundreds" were complaining, and one resident told the BBC that sometimes "we can't run the taps".
Indaver, which has run the Rivenhall incinerator near Silver End since last summer, said it had also "experienced challenges with water availability".
Anglian Water, which provides the supply for the waste plant and nearby homes, said it had "multiple teams dealing with the situation".
The company recently implemented a hosepipe ban for its customers.