Tests will be run to determine if soil in an Adelaide suburb is contaminated with the toxic chemical trichloroethylene (TCE).
South Australia's Environmental Protection Authority says an auditor remediating a site in Unley, near where there used to be manufacturing businesses, reported finding vapours of the chemical in a bore.
The authority is warning local residents not to use bore water and has told them the tests should be completed by July.
TCE is an industrial chemical used as a solvent and also in various manufacturing processes. It can have significant adverse health effects depending on the level of exposure.
EPA Science and Assessment Director Peter Dolan says various industrial chemicals have been found in Unley as manufacturing premises have shut down and made way for housing.
He says most sites have been remedied, but this latest find shows some sites may not have been properly cleaned up.
"What we're interested to do is find out whether there is a source or a number of smaller sources in that general area that haven't yet been remediated," he told ABC radio on Tuesday.