"We're on the back of drought and COVID, we've worked very, very hard to save every drop of water and now they want to sting us," Mr Anderson said.

"Now they want to try to increase our charges by 40 per cent, it's unacceptable.

"I've already spoken to the NSW Water Minister [Melinda Pavey] about it and I will be making a submission to IPART [Independent Pricing and Regulatory Tribunal] to let them know that we don't believe that it is fair, equitable and they should not be doing it."

Tamworth Regional Council (TRC) will make a scathing submission to the independent pricing watchdog and voted on Tuesday to ask the local member for his support.

WaterNSW has requested IPART increase the raw bulk water charges which would see the city pay more than double the next highest priced valley in the Murray-Darling Basin and 10 times that of the Murrumbidgee.

The state's water corporation has said the price hike is due to an increase in environmental expenditure, asset maintenance costs and technology upgrades.

Councillors have called the proposed hike "unfair, unreasonable and illogical".

Mr Anderson said he told Ms Pavey he believed IPART was out of touch with regional NSW and the water challenges the region has faces.

"The Peel Valley is unique and I think it should be treated quite separately, rather than just slapping a 40 per cent increase - I think it's obscene," he said.

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"When people want to invest, when businesses want to come to Tamworth - when you look at those high security users and those intensive industries that use a lot of water like poultry and abattoirs, beef and lamb - how can you expect industry to take a second look at us when you start jacking up the price of water like IPART wants to?"

If IPART approves the increase, water from the state-owned Chaffey Dam will cost $253.55 per megalitre, while the council's Dungowan Dam price sits at $5.25.

Even if IPART recommends the maximum charges be levied, the state government can step in to ensure those aren't implemented.

Under the changes Tamworth's water taken from Chaffey Dam in 2021 to 2022 will cost $1.2 million.

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