On Thursday night, officials said a second round of favorable test results of the town's water system allowed them to rescind the notice.
All businesses that count on water in Smithfield had to close while the notice was in place.
"I couldn't believe it was closed, because usually Cracker Barrel is packed," Smithfield resident Melissa Morris said.
And the economic impact for businesses like Smithfield's Chicken and Bar-B-Cue, which closed its doors Wednesday at noon, is expected to be substantial.
"Between yesterday and today close to 10,000 of business loss in two days and plus whatever repercussions come if it lasts past today," General Manager Philip Crawford said.