Redland City Council’s new budget reveals the yearly charge for using 550 litres a day will rise from $154 now to $274 in the 2008/09 financial year.

The 79 per cent increase will accompany a $10 jump in the water access charge.

The increases in water usage fees are largely being blamed on the State Government’s takeover of council-owned bulk water assets at the end of the month.

Mayor Melva Hobson said the council would have to pay much more to obtain bulk water when its dams, borefields and water treatment plants transferred to government ownership on July 1.

Redland City Council will soon gain $80 million in compensation for losing ownership of the assets and will use the money to reduce debt.

“In the Redlands, we’ve historically had low water prices because we’ve owned our own water supply. All that’s now changed,” Cr Hobson said as she delivered her first budget on Tuesday.

South East Queensland councils, however, will remain in charge of distributing water to households until 2010 when another ownership shake-up is planned.

Cr Hobson said part of the price rise was due to the council deciding to charge residents the full cost of supplying the water to households.

She said this may allow the council to gain more substantial compensation when it loses ownership of suburban water pipes in two years.

“The best way for households to keep their water expenses down now is by using less water,” Cr Hobson said.

A pipeline connecting the Redlands to the South East Queensland water grid via Logan is due to be completed by the end of the year.

The Redlands is likely to face tougher water restrictions once connected to the grid, which transports water to areas of need across the region.

Water prices will continue to increase each year to help pay for the $9 billion water grid. The Redlands was told it would benefit from lower price rises in the first two years.