I Love My Water far north Queensland distributor Paul Giovanni said his Mount Isa agent was fired because his scare tactics to get people to buy a water filter were "unethical".

"As soon as were received the complaint that one of our employees had made claims that Mount Isa water was unhealthy and could make people sick we terminated their employment," he said.

"We'd like to apologise to anyone who was misled or affected by the claims of this sales agent."

I Love My Water has been operating in Mount Isa for just a few months.

Mount Isa Water Board chief executive Ian Pascoe said he was relieved to hear something had been done about the "incorrect information" being told to members of the public by the company.

"We couldn't have people go around making comments about the water quality, saying it had high lead levels and could give you Giardia, when in fact that is completely untrue," he said.

"Our water is well below the Australian Drinking Water Guidelines of 0.01 milligrams of lead per litre. It only has 0.001."

Mount Isa City Council said it was aware of a complaint about the conduct of I Love My Water by one resident.

"We've looked into it thoroughly and as far as we are concerned there is no truth in the fact that Mount Isa water is unsafe," a spokesperson said.

"Using scare tactics in order to achieve sales is blatantly unethical."