Yountville and the California Department of Veterans Affairs, which owns and operates the water treatment facility, "have met mandated testing requirements for negative results for E. coli contamination in the water," the town said in a statement.
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"The State Water Resource Control Board has approved the use of town water," according to the statement.
The town said earlier Saturday that test results showed none of the bacteria in the municipal water supply that prompted a precautionary notice to boil water issued Thursday.
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Three negative test results, each taking 24 hours, are required before the boil order can be lifted, the town said in a statement.
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Residents were told to fill their own containers with potable water at the fire station at 7401 Solano Ave.
The town's water supplier, Cal-Vet, detected E. coli bacteria in the municipal water supply Thursday.