The Attorney's Office and NCDEQ launched a joint investigation after receiving a tip.
A town official said the leak contaminated the pond and was likely responsible for causing the presence of red algae.
Leaders with the Orange Water and Sewer Authority will discuss their action plan.
According to officials, the dangerous bacteria is a result of the recent heavy rains.
To date, PWC has been awarded more than $60M to support its $80 million project.
North Carolina has 47 drinking-water systems with concerning levels of PFAS, also known as forever chemicals.