City Secretary Pam Long said the well located on the corner of San Patricio and Franklin streets will require repair after it quit working Wednesday.
"We have a commercial water well company coming in Monday to pull the well," Long said. "We're very fortunate in being able to get them that quickly because they're so busy with the oilfield."
Long said Goliad State Park Manager Brenda Justice has closed the city pool until the well is repaired.
The city pumps an average of 650,000 gallons per day to its customers. All of that is now being pumped from the city's lone operating well located on Chilton Street.
"That's why we're having to cut back," Long said.
Citizens are asked to refrain from using lawn sprinklers, washing cars, filling pools or any other non-essential water usage.
Long said residents will receive a call from the city when the water conservation alert ends.
Customers can call City Hall at 645-3454 for more information.