North Pole Mayor Doug Isaacson said the situation is not a public health emergency.
But he said steps are being taken to protect the public, including bottled water provided to about two dozen residents in the affected area near the Flint Hills Resources refinery.
Trace amounts of the chemical sulfolane were found in a city well, which has since been turned off. Private wells in neighborhoods near the refinery are being tested.
Alaska Department of Environmental Conservation officials say results of the tests should be available as soon as Tuesday. A town hall meeting was set for Nov. 23 at North Pole High School.