The government has commissioned a study conducted by La Trobe University to estimate the community's willingness to pay to avoid water restrictions or other impacts of drought response measures.
During previous droughts, restrictions were shared equally among households.
The move has prompted claims by Labor water spokesman Walt Secord that it would create a "two-tier system".
"It's unfair that rich people can pay more to escape water restrictions while struggling families must conserve to avoid higher bills," Mr Secord told AAP on Sunday.
He said he's also concerned about the environmental consequences.
"We should be conserving water, especially in times of drought. We shouldn't be pursuing policies which encourage people to waste water," he said.
Mr Secord said he feared that cuts from the Sydney Water infrastructure budget this year is driving the government to find new ways to find revenue from Sydney Water.
"Sydney is now at 1970s water conservation levels, but the O'Farrell government is trying to find ways to grab money from Sydney families and increase Sydney Water dividends," he said.
The state government is being contacted for comment.
dailytelegraph.com.au 24 Mar 2013
Another illegal act, restricting of water to households, perpetuated by government, for which the masses have to pay.
The mass population are deliberately kept in the dark as to their rights, and common law.
In Victoria, while the government introduced water restrictions to the masses, sprinklers on government sites wasted water not only on the lawns, but also many gallons flowed down the drains.
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