RESIDENTS have been warned to stay clear of the Terranora Broadwater after raw sewage leaked into a canal.

On Friday a contractor boring under the sewerage main at the intersection of Gollan and Lakeside Drs, Tweed Heads West, damaged the pipeline.

Council workers diverted the flows through another pipeline to restore sewerage services to the Banora Point treatment plant.

However some raw sewage entered the canal near the Seagulls Estate through the stormwater system.

"Council workers stopped the leak quickly but a quantity entered the drains," director of engineering David Oxenham said.

"Council has begun water sampling within the surrounding area, in accordance with council's incident management plan, to determine the spill's impact on the canal and the adjacent Terranora Broadwater," he said.

The Environmental Protection Authority (EPA) and operators of nearby oyster farms have been notified and Council will continue to liaise with these groups.

Residents should avoid contact with the water in the canal that runs parallel to Jacaranda Dr until water quality tests are completed.

No swimming signs have been erected along the canal and the shores of the Broadwater in the vicinity of the Seagulls Estate.

The result from the first water tests are expected from the council today.