Greenhaw Lodge Care Centre said legionella bacteria was found during an inspection on September 8.
It added that no residents or staff have symptoms of Legionnaires’ disease.
Care home regulator, the RQIA, said alternative accommodation would be provided during “remedial works”.
Greenhaw Lodge, which is run by Larchwood Care Homes, said: “We sincerely apologise to our residents and their families for the inconvenience that this will cause.
“Our staff’s immediate priority is to update the families of residents and manage their safe rehoming, with as little disruption as possible.
“This is being managed in partnership with Western Health and Social Care Trust, and RQIA.
“We will use this time to upgrade the facility in-line with the modern requirements needed for the longer term well-being of the residents in our care.”
The regulator said residents were being moved from the home “to protect their safety, health and wellbeing”.
It added that significant repairs were required to the water system as it extended throughout the complex.
Legionnaires’ disease is a potentially fatal lung infection caused by legionella bacteria.
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