Authorities have rushed medical professionals to Dadsara village in Tral after at least a dozen people were diagonised with jaundice villagers say has spread from a dirty irrigational canal.
The sick, including men, women and children were being treated, district health officials say.
"They have fallen sick due to the consumption of dirty water from an irrigation canal," a villager said.
Health officials said medicos and machines were sent to the area to prevent the disease from spreading further.
A health official at Sub District Hospital Tral told Greater Kashmir that filthy and untreated water was responsible for the outbreak of the disease in the area. However, he added that all patients were being treated.
Locals said that for many years the water canal in the area had not been cleaned.
"The project, functional under the irrigation scheme provide filthy and untreated water," alleged another resident.
People in the village are resentful of the authorities and demand clean water supply to mitigate their problems.