Irish Water will be able to charge households that waste water up to 500 euro per year.
The utility's water conservation plans have been given the green light.
People who are found to be using above the set limit per household will be given a year to fix any leaks or try to reduce their usage, before being billed.
Householders with more than 4 children or with a medical condition can apply for an exemption.
People feel the charge for overuse was fair.