The water outage began after flooding in the city caused the potable water there to get muddy and unhealthy for drinking.
This has also caused difficulties for water supply to the city of Shahre Kord, the provincial capital.
Iranian Minister of Energy Ali Akbar Mehrabian says the problem will be resolved within the next couple of days.
Mehrabian has also urged residents of Kouhrang to save water so that the reservoirs of the city will grow in water reserves and will be able to get water to all people in Kouhrang.
Shahre Kord’s representative at the Iranian parliament has blamed the problems on poor infrastructure in the region.