ALGIERS - Libyan forces loyal to Muammar Gadhafi fired artillery shells into the rebel-held city of Misrata early on Saturday and water supplies were still cut off, a resident said.

Related readings:  Gadhafi's son: military operations to end in 48 hrs  Pro-Gadhafi forces bombard oil facilities in Ras Lanuf  Libya declares cease-fire after UN resolution vote

"They (Gadhafi's forces) bombed the town with four or five artillery shells in the early hours today. The situation is relatively calm now. But they are still on the outskirts of the town, and water to Misrata is still cut off," the resident, called Mohammed, told Reuters by telephone from the city.

Libyan government officials deny attacking rebels and say they are observing a ceasefire. Reports from Misrata could not be verified independently because authorities in Tripoli have prevented journalists from reaching the city.