Approved in the 2020-21 operation plan are a couple of water rate increases that may not have been expected by some Mid Coast businesses.

According to MidCoast Council infrastructure and engineering services director, Robert Scott, the changes are targeting high volume water users in residential areas and rural property owners who don't normally contribute to the overall cost of the water scheme.

For residents on a 20 or 25 millimetre water meter there have been a couple of changes for the new financial year.

While the first step rate of water usage remains the same as last financial year, the second step has changed from $4/kl to $4.20/kl.

Also changing is the amount of water usage allowed in the first tier before shifting to the higher rate.

In the 2019-20 plan, the higher rate kicked in once residents with 20mm meters went over 50kl per quarter or 25mm meters went over 78kl per quarter.

That has changed for 20mm meters to be 35kl and for 25mm meters to be 55kl.

"This is the average water used per property across the region," Mr Scott said.

"Approximately half of our customers don't go into the second tier.

"The less water a customer uses the more they save compared to those who use more water."

The downside to the equation is that while the rate increase is designed to target high water users on residential properties, some business in the region are also on the smaller water meters.

Therefore, high water using businesses like car washes and laundromats will be impacted.

Another one of the charges to increase is the purchase of bulk water (non resident high consumption), meaning mainly water carters.

The rate of charge has been changed from $3.60 per kilolitre (or 1000 litres) to $4.95/kl.

What hasn't changed is the cost of the licensing fee for carters to access the water.

According to Mr Scott, the increase is designed to pick up on the development fee that is charged for new water services in subdivisions and new developments.

What does it mean for rural properties needing water carted in?

At last year's rate, a load of 10,000 litres of what would have cost the water carter $36, the new rate will see that wholesale cost increase to $49.50.

Overall, it's all about encouraging residents to think about their water usage and try to achieve more equity, where those who use more water, pay more.

"There is an opportunity to consider increasing water storage to help take the pressure off the system during dry times," Mr Scott said.

"Unlike other water services, we never restricted the use for livestock or fire and we don't intend to. We will provide water for essential human and animal health."

The 2020-21 operational plan was approved at the ordinary MidCoast Council meeting on July 8.

Mayor, David West, along with councillors Katheryn Smith, Len Roberts, Claire Pontin, Troy Fowler, Karen Hutchinson voted for the motion, while Kathryn Bell, Jan McWilliams, Peter Epov voted against the motion.

Brad Christensen and David Keegan were not present for the vote.

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