One of the joint venture companies exploring for uranium south of Alice Springs says initial testing shows the town's water quality will not be affected.

Cameco began drilling at the Angela site in May and will finish within the next month.

Project manager Stephan Stander says water monitoring during the exploration phase has indicated no impact on the town's water.

"In addition to that, from discussions that came out with the community reference group, we've undertaken to initiate a water supply study.

"That means that should we want to go to mining, where would we actually get water from, which is actually a different aspect to then actually affecting town water quality with the mining."