The problem came to light after a number of jaundice cases being reported on a regular basis .
Following this, a four-member team of the Municipal Corporation visited the area today.
The team of the health department, led by District Health Officer SS Dhir, said 15 cases of jaundice were detected by the team. Five samples of water were also taken for testing.
He added the residents have been warned against drinking water without boiling it.
Residents have complained that due to old and worn-out pipes, they have been getting contaminated water for over three weeks now.
"I have been sick for the last three weeks. Look at the murky water. It tells the sorry tale. We have informed the authorities about the possible leakage. I hope something is done in this regard soon," said Kulwinder Singh, a resident of Gali Number 35.
Ludhiana Municipal Corporation Health Wing Medical Officer Dr Charanjeet Singh Uppal said: "Our team has already taken stock of the situation. We have informed the O&M wing about the possible pipe leakage," he said.
Meanwhile, area residents rued that indifference of the Municipal Corporation officials was responsible for the outbreak of the disease.
"Why can't they check the water pipes for any faults on a regular basis? These pipes were laid down nearly 25 years ago and have never been checked for any possible wear and tear," fumed a resident.
However, the Municipal Corporation today swung into action and stopped the regular water supply to the area. The water is now being supplied through the water tankers.
"We have called for water tankers to supply safe drinking water to residents. Also, we have identified three to four locations where the leakage must have taken place," said Sharanjeet, in charge, Ward Number 71. Simarjit Singh Bains is the councillor of the ward.
Narinder Dadwal, a resident, said the problem is spreading to new localities as a few cases have also been reported from adjoining Gurpal Nagar.