The rise is significantly less than last financial year, when water bills increased by 25 per cent.

According to Central Highlands Water's new price list, the annual water access fee for Ballarat now stands at $199.49 up from $185 last year.

And customers will be charged $1.40 per kilolitre for the first 150 kilolitres, $1.68 for the next 151 to 300 kilolitres and $2.10 for above 300 kilolitres.

Central Highlands Water spokeswoman Nicky McMaster said the increases were part of a five-year plan approved by the Essential Services Commission.

She said the three-stage tariff had been introduced last year.

"It's just one way of helping people use water sustainably ... the more you use the more you pay," Ms McMaster said.

She said the water plan also included going ahead with investment in major infastructure and sewerage programs.

She said people facing financial hardship could seek assistance and would be dealt with on an individual basis.

Water fees are set to increase by 3.1 per cent for each of the next three years.