Severn Trent Water said customers in the area may experience a temporary loss of supply or low water pressure.
Work is taking place to fix the burst, and properties should see water restored within the next six hours.
Motorists using the A4117 are being advised to drive with caution as a large amount of water is on the road surface.
A Severn Trent Water spokesperson said: “Our teams are on site doing all they can to get things back to normal as quickly as possible. Whilst we work to rectify the problem our engineers will be redirecting water into the affected area via our network of pipes. We hope this will restore supplies to some customers currently affected by the issue. We’ve also mobilised our rapid response tanker fleet to pump water back into the mains.”
Ludlow, temporary traffic lights are being set up on the A4117 Rocks Green between the A49 & B4368 after a burst water main.
— Travel Tom (@thetomstokes) July 3, 2014