A main pipe burst in the Rocks Green area of town on Monday leaving homes without water for several hours and main roads flooded.
Councillor Tracey Huffer for Ludlow East praised Severn Trent for acting quickly but said major pipe bursts are becoming far too frequent.
She has raised concerns that the problem may worsen when 200 new homes are built in the near future at Rocks Green, as well as a new supermarket just off the A49.
A Severn Trent spokesman said there are no upgrades currently planned for Ludlow.
He said: "We’ve invested £6 million over the last five years to replace around 50km of new water pipes in Ludlow and the surrounding area to help prevent the number of leaks and bursts.
"We’re planning to invest a similar amount on our network across Shropshire in the comings years, to ensure people enjoy a reliable supply of water for many years to come."