ABC

Residents of outstations near Alice Springs say their water has been restricted by the Power and Water Corporation because they owe it $21,000.

The families on the Iwupataka Land Trust west of Alice Springs ran up the bill when their water pipes leaked.

Outstation resident Alby McKay says the money is being paid off but Power and Water have put a restrictor on the water main and water flow is intermittent and unreliable.

He says the six families on the land are struggling without normal supply.

"My eight-year-old has just come out of the hospital with rheumatic fever," he told 783 ABC Alice Springs.

"And I put it down to there's no water because he can't wash, because there's no water for toilet, there's no basin ... there's no water."

The Power and Water Corporation says it is discussing the situation with the families and Aboriginal organisations representing them.