Officials said water quality was unaffected following a spill of aqueous ammonia at the Santa Clara Valley Water District's Santa Teresa plant, Sunday afternoon.
The Merc reports authorities lifted the shelter-in-place warning at about 2:15pm after crews sealed a leak on a 5,000-gallon holding tank.
San Jose fire Capt. Steve Forman said the department's hazmat team responded around 11:15am, and issued the warning at about noon after discovering 250 gallons of spilled liquid.
The warning applied to residents of Graystone Lane at Via Santa Teresa; Rosalind Lane; Skuse Court; and Carriage Hill Drive.
The plant is currently shut down for construction and maintenance.
There were no injuries reported.