Severn Trent Water said that people living in the TF2 and TF3 areas of the town may have been affected.
Some residents will have had no water from about midnight.
The team from Severn Trent fixed the issue at about 7am, although those affected may find they have low water pressure this morning while the system refills.
A spokesman for the company said: "The water pipe that burst is being repaired and we're now working hard to get everything back to normal as quickly as possible.
"We know how difficult it is to have no water and we're really sorry for any inconvenience this may be causing.
"We'd like to reassure our customers that we're doing everything to get the water supplies back on as soon as we can."