Severn Trent alerted customers in the "WV area of Wolverhampton" to the supply interruptions at around 3am with the company admitting those affected may have water running at low pressure or no water at all.
Engineers initially had to carry out an investigation to locate a leak which was the cause of the interruptions.
They had uncovered the problem by 5am, and engineers were working to repair the pipe.
Severn Trent said in an update for customers at 4:57am: "Our engineers are now onsite of a burst water pipe on Dimmingsdale Road, Wolverhampton.
"We are working hard to repair the leak and looking into other ways of moving the water around the network to restore water to our customers."
"We want to thank everyone for their patience this morning, and we are sorry for any inconvenience caused," the update continued.
Good progress was made with some of the service up and running again by 8am,
A further statement, published at 7:50am, said: "As promised, we’d like to provide you with an update on the situation and let you know that our teams are working hard on the repair.
"We’re confident at this stage in the repair, you should now start to see your supply being restored.
You will continue to see us onsite whilst we carry out the essential works," the statement continued.
"We’ll be working flat out to get things back to normal for you as quickly as we can as we understand how difficult it can be without water.
"We really appreciate your patience whilst this is ongoing, and we will continue to update this page to keep you fully informed".
As the supply returns customers were told they might experience "slightly discoloured" or "bubbly" water, but Severn Trent say it's nothing to worry about.
You can follow the updates on Severn Trent's incidents website: https://www.stwater.co.uk/in-my-area/incidents/supply-interruptions-in-wolverhampton7/