Cheltenham's standing as a spa town has been secured after a local company offered £30,000 of funding.
A mineral water tap at the Pittville Pump Room has dried up
A tap fed by the spring at the Pittville Pump Room are running empty, as the town's bore hole has developed leaks.
This diluted the mineral content of the water and threatened the spa status.
Kohler Mira, which makes bathroom accessories, has pledged the money to fund a new bore hole and pump, with work due to finish in October 2005.
Roger Crabb, marketing director at Kohler Mira, told BBC News: "We will cover the cost of drilling a new bore well 50m below the surface of the Pump Room, to bring water back up to the surface.
"We have been in the town since the 1930s and it is a perfect opportunity to put something back in."
The water at the Pump Room has been unavailable since February when testing revealed the leaks.
A spokeswoman for the borough council said: "We will be carrying out a survey as part of the restoration work, and will know more about where the bore hole is likely to be in the next few weeks."
"We are committed to restoring the supply of spa water and apologise for any inconvenience caused."
Cheltenham's spa waters, which stem from a spring near the site of the town's ladies' college, were discovered in the 18th Century.
They gained in popularity in 1788 when George III spent five weeks 'taking the waters' in the town to improve his health.