People in Northern Ireland can expect to pay up to £400 a year for water from April 2006, it emerged today.
Although the exact cost of the new charges remains unknown, it is understood restructuring of the Water Service is likely to lead to several hundred job losses.
Regional Development Minister Ms Angela Smith said that in order for the water sector to become self-financing, charges would have to be introduced to bring Northern Ireland into line with the rest of the UK where consumers already pay for water.
She served notice of water charges as she launched a public consultation on the future of the sector, which needs investment totalling £3 billion over the next 20 years to bring it up to European standards.
The moves are likely to meet resistance from local politicians, who oppose the introduction of water charges, and trade unionists within the Water Service.
Ms Smith said the public would be asked how charges should be introduced, how the reformed service should be structured, and how consumer interest could be protected.
"The reform programme will consider the most appropriate basis for charging for water and sewerage services, the most effective business model for delivering these services and how best to promote the customer interest and protect the environment under the new charging regime," she said.
"If domestic water and sewerage charges were introduced today, Northern Ireland households would have to pay up to £400 on average each year," she added.
PA