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A chemical company was forced to be closed for having caused a massive tap water pollution in Yancheng, east Jiangsu province, said a city government official Saturday.

The city government secretary-general Xue Yu said that the Biaoxin Chemical Company, the privately-owned enterprise, was found illegally discharging wastewater.

Local police have "controlled" the company owners, said Xue, who didn't identify the numbers.

Two chemical polluted plants have yet to restore tap water supply as of 9:10 a.m. Saturday, according to sources with the Yancheng city government, east Jiangsu Province.

The city, with a population of more than 1.5 million, has three tap water plants, and only one plant was not polluted.

A customer looks at a half-empty shelf of bottled water in a supermarket in Yancheng, Jiangsu province, Friday, Feb 20, 2009. The price of bottled water has shot up because of the increasing demand. [Photo: Chinadaily.com.cn/Asianewsphoto]

Residents at the second floor or above have no access to tap water because of insufficient water pressure, explained a manager of the Huijin Water Co., Ltd., which exercises management over the two tainted plants.

At about 6 a.m. on Friday, an abnormal smell was detected in the water at the Chengxi and Yuehe water plants. An initial investigation found the water was contaminated with a phenol compound, which made it undrinkable.

The stoppage affected most residents and industrial production in the city,

It is not clear when the two plants will resume operation, and workers are cleaning the water pipes.

(Xinhua News Agency February 21, 2009)