The Police in Koforidua has confirmed that the change in colour of the Nsukwa stream was caused by a powdered substance.
The Station Officer, Chief Inspector Ebenezer Sekyi in a phone conversation with Ghanaweb said the substance was poured into the stream which passed through the New Juaben Municipality by a tie and dye manufacturer.
He said the police have been able to gather some evidence.
Residents of the municipality woke up to an unusual sight on Saturday as the stream had turned red.
The residents who were shocked by the news trooped to the stream in their numbers to have a view for themselves, reading different superstitious meanings into it.
Chief Inspector Sekyi said they are still looking into the matter and will take the appropriate action in due time.