In May, water was released into the streets of Beijing as the city tried to reduce the levels of the toxic CO2 in its drinking water.
The city’s chief water officer said the water was a result of a power surge, not a malfunction of the water heater.
The Chinese government has promised to replace at least 1.5 million water-related devices this year.
China’s water authorities have been under pressure for months to address the issue, as Beijing struggles to meet its emissions reduction targets.
The capital’s government announced on Monday it would require households to use more efficient water heaters, and ordered more testing of household water meters to ensure they were working properly.
The government said it was also ordering more than 3,000 new water-treatment plants to help control pollution.
China has spent billions of dollars to improve its water infrastructure.
In July, China introduced a national drinking water system, with more than one billion households now using the system.
The government also pledged to invest $1.5 trillion in the coming year to improve water infrastructure, including by developing more advanced water treatment plants and upgrading water pumps.