Residents are urged to boil tap water for one minute

SYDNEY, Australia (CNN) -- Panicked residents in Australia's largest city stocked up on bottled water Friday amid fears that a treatment plant was pumping parasite-polluted water into homes, businesses and hospitals.

Tests earlier in the week in the city of 3.7 million people turned up signs of contamination in a small area of downtown. But emergency warnings were expanded to include suburban areas after the outbreak was found to be much more widespread than originally thought.

How did it happen and has anyone become sick? Watch this report from reporter John Raedler.

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John Raedler reports on the water scare
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