A spillage into the River Monnow has been reported to a county councillor by a resident of the town.
Councillor Jane Lucas highlighted the leak at the slaughterhouses in Priory Street underneath the Monmouthshire County Council owned Market Hall.
It has been reported that Welsh Water officials have investigated and ruled out any problems with their own network.
Drain Rod have been investigating further with MCC officials, who were made aware of the problem on Saturday, but are still not certain where the leak is coming from
An investigation into the leak has been welcomed by Monmouth MP David Davies who said: “It is very worrying that this is discharging into the River Monnow and even more so that it could potentially be coming from a building owned by the local authority.
“I immediately wrote to Catrin Maby, Cabinet Member for Climate Change and the Environment, and a senior officer replied to confirm they are not entirely clear where the sewage leak is coming from.
“I am told specialists have now been commissioned to investigate this further as any discharge into the water course is a matter of clear and equal concern.
“I look forward to receiving a further update once the source has been identified as well as the steps being taken to promptly remedy it.”
The area of the spill, once known as the Shambles, was used by butchers at the turn of the 20th century to slaughter the animals brought up from the market at the bottom of town.