From July 1, CHW customers can expect an annual water bill of $1237, a 1.7 per cent reduction on the past 12 months.

But despite the reduction, the figure still compares poorly to other water companies with North East Water the cheapest in the state with an average price of $875 per year.

The most expensive water in Victoria is in the Horsham region with GWM Water customers paying on average $1387 a year, a $30 reduction on the past 12 months.

Other areas with higher bills include Coliban Water ($1339) and Gippsland Water ($1334).

CHW’s general manager customer and community Jacqueline O’Neill said the authority manages 15 water supply systems and 13 wastewater systems.

She said the ESC had rated the authorities pricing structure as advanced which she said meant customers would receive price certainty, increased service levels, improvements to water quality is some smaller communities and limiting most bill increases to below inflation.

“Our tireless 12-month Let’s Talk Water community engagement initiative engaged over 1,000 people across our service region in order to better understand what was important to them,” Ms O’Neill said

Essential Services Commission chair Ron Ben-David said pricing decisions across the state will see the vast majority of Victorian water customers benefit from flat or falling water prices.

“We dared the water businesses to think big and today we’re seeing the dividends for customers from that dare,” Mr Ben-David said.

“We challenged the water businesses to work with their customers to find the best ways to deliver real service improvements while also saving customers hundreds of millions of dollars over the next five years.”