About 100 dead fish have been seen floating on the surface of the canal near Reservoir Place.
The EA installed a temporary dam across the canal on Thursday as a physical barrier to block off the contaminated section.
Arrangements have also been made for boaters who wish to leave the area, the council said.
An investigation into the cause of the spillage was continuing with the issue having been declared a major incident by the West Midlands Resilience Forum, comprising three local councils, health agencies, police, fire service and organisations responsible for water and waterways.
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