Guinness is to refund rent and service charges to Loughborough Park residents for the 18 days the estate spent without water.
The water supply has been restored to all flats on the estate in Brixton, south London, but the landlord has not yet determined if it is suitable for drinking after 24 days of disruption.
The 65,000-home housing association is still providing bottled water to residents while it tests the water.
Guinness would not reveal how much they will pay out in compensation.
The water problems were initially caused by a damaged underground pipe, which cut off the water supply to the whole estate on 8 October. During the disruption, Guinness provided bottled water to residents and installed toilets and portable showers on the estate.
On 12 October, when it became clear that parts of various underground pipes needed to be replaced, Guinness offered residents alternative accommodation in hotels, though some complained that these were as far afield as Westminster.
Guinness told residents that the problem would be fixed by 18 October, but in the end it took another week to restore water to the estate.
Sophia Akrofi, a resident on the estate, is unhappy with Guinness’ handling of the issue. She told Inside Housing: “When you speak to them, there’s no care, there’s no attempt to ask what would make the situation a bit better or make us a bit more comfortable.”
A spokesperson for The Guinness Partnership said: “As a purely precautionary measure, we are advising customers not to drink the water until we have tested it to ensure it is suitable or drinking. We will continue to deliver bottled water for drinking to people’s homes until we have the results of the water supply tests.”