The Northern Territory Government has moved to allay fears that the Alice Springs town water supply could be contaminated by a potential uranium mine.

On Wednesday night, 150 residents voiced their concern, after the NT Goverrnment gave two companies the right to apply for an exploration license for the Angela/Pamela deposits south of the town.

But the Department's regional water manager, Graham Ride, is adamant Alice Springs water is safe.

"Before any mining leases were issued, then a full environmental assessment would be required and the company would be required to show that there would be no impacts on our major aquifers," he said.

"The protection in the long term of our water resource is absolutely vital for our Alice Springs community, we'll be looking very closely at future development proposals."