A PRICE hike proposed for rural bulk water services is under review by the Independent Pricing and Regulatory Tribunal (IPART).
The review will set new prices for Water Administration Ministerial Corporation and Water NSW services from July 1 next year.
IPART chair Paul Paterson said the focus is on whether the proposed cost increases are justified.
"WAMC is proposing large increases in water planning, management and regulation costs," he said.
"It has indicated these increases are needed to meet its customers' priorities and provide a higher level of service than in the past."
WaterNSW has also proposed large cost increases to maintain service levels and meet regulatory requirements, according to the tribunal.
Submissions can be made through IPART until October 16 and customers, communities and stakeholders are encouraged to make comment.