South Hams District Council and South West Water are urging residents to use caution after being made aware of several scam calls following the Brixham water crisis.
A spokesperson for SHDC said, "Please be assured that the compensation from SWW will be paid automatically into your bank account or credited to your next bill, depending on how you pay your bills."
The compensation from SWW will be paid to all household customers who have been issued the boil water notice during the cryptosporidium incident.
Last weekend, the utility company increased the compensation available for the remaining affected households from £115 to £215 to apologize for the outbreak.
The company has asked that you report any suspicious calls to the police or directly to them.
You can also report a scam by calling 0300 123 2040 or visiting the Action Fraud website