Hopes for trouble-free celebrations had to be dramatically re-assessed when the pipe gave way at 2000 GMT on Christmas Eve.
Scottish Water said it hoped to restore services to the homes in central Scotland at around lunchtime.
Until then families in the towns of Alloa, Sauchie, Tullibody, Cambus and Menstrie will have to make do with emergency supplies.
A Scottish Water spokeswoman said the company had not decided whether or not compensation would be offered to those affected.
Lengthy job
The trouble started when a 21-inch water main carrying water to the area burst in Tullibody, Clackmannanshire.
Scottish Water ordered teams of engineers in to sort the problem out, but they faced a difficult and lengthy job.
The company was making supplies of bottled water available to all of its customers with special needs.
Special water lorries were carrying water into the affected areas and extra bottled water was also be delivered to strategic locations.
Helpline
Peter Farrer, Scottish Water's general manager, said: "We would like to apologise for any inconvenience caused to our customers.
"We would like to reassure our customers that we are doing all we can to restore supplies."
A Scottish Water spokeswoman said the pipe which burst was part of an ageing system that it was in the process of replacing.
A special helpline has been set up on 084 5600 8855.