The improvement works would have meant the closure of the busy B5067 between Baschurch and Walford in the coming weeks.
However the water company has announced that the road closure will not take place at the moment as the work has been stopped. It has not said why the work has stopped.
"Due to circumstances out of our control we will be stopping the works until further notice. Sorry for any inconvenience this has caused," it said.
Severn Trent has been installing nine kilometre of brand-new pipes across the Shropshire village, to help reduce the number of leaks and bursts in the area.
Work began in June and the major network upgrade was expected to take approximately six months to complete.