Asylum seekers are being removed from the Bibby Stockholm barge in Dorset after Legionella bacteria was found in the water.
All of those on board are likely to be taken to new accommodation as a precautionary measure.
Immigration Minister Robert Jenrick is understood to be chairing meetings about the situation.
Legionella bacteria, which is commonly found in water, can cause a serious type of lung infection known as Legionnaires’ disease. None of those on the barge have shown signs of having the disease.
The first 15 asylum seekers boarded the barge in Portland, Dorset, on Monday and a small number also arrived on Tuesday. Several refused to board the vessel amid warnings from the Home Office that they would face having government support removed.
On Wednesday, Mr Jenrick described the barge as “perfectly decent accommodation”.
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Barge ‘is perfectly decent’
The capacity for the barge is more than 500 and has been hailed by the government as a deterrent against small boat crossings.
After the first cohort boarded on Monday, Cheryl Avery, the director of asylum accommodation at the Home Office, said: “We have had a few challenges, but this is part of an ongoing structured process to bring a cohort of up to 500 people on board.
“There have been some challenges, some minor legal challenges, and I can’t go to the detail of those, but accommodation is offered to all individuals on a no-choice basis – so we are looking at how we manage that going forward.”
Read more on the Bibby Stockholm:
What’s it like inside the barge?
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Barge reminds migrant of Islamic State
The Bibby Stockholm is one of a number of alternative sites the Home Office is using to end reliance on expensive hotels for asylum seekers, which the government says is costing £6m a day.
There has been considerable local opposition due to concerns about the asylum seekers’ welfare and the impact on local services.
On Tuesday, one asylum seeker said living on the Bibby Stockholm would remind him of hiding from the Islamic State group.
Two other vessels set to house 1,000 asylum seekers were unable to find anywhere to dock and have been returned to their owners.