'The water is technically safe,' says Iqaluit mayor. 'Does it smell bad to some people? Yes.'

Despite reports of Iqaluit's tap water smelling like fuel, city and territorial officials say it's safe to drink.

"The water is technically safe," said Iqaluit Mayor Kenny Bell. "Does it smell bad to some people? Yes."

Bell said the city has received 116 phone calls from residents reporting the fuel smell in their water since last Wednesday.

"We think that may be just... a little bit of residual oil that was there," said Bell.

On Oct. 12, the city's water system was found to be contaminated with hydrocarbons from an historic underground fuel tank. The city's residents spent nearly two months under a do-not-consume order.

Nunavut's chief public health officer Dr. Michael Patterson told CBC News there's no evidence of new hydrocarbons in the city's water treatment system since residents started reporting the fuel smell last week.

The territorial government said sampling of the city's water found trace amounts of fuel that were below Canadian safety guidelines "and considered safe for consumption."

In a statement, it added there is currently "no evidence that a do not consume order is necessary."

Bell said he expects the situation to be resolved "within the next day or so."

"I don't foresee this being a huge issue, not like it was in October," he said.

However, both Bell and Patterson said they understand why residents are reluctant to drink the water.

"No one wants to drink... water that smells like fuel or tastes like fuel," said Bell.

Patterson explained that many people are able to taste the fuel in the water "long before it gets to the level that it causes health problems."

Bell said he understands that many residents don't trust the city's water.