Users of the Oxenden Water System are going to see their rates rise this year.
Georgian Bluffs Council approved the rate increase Wednesday night.
The water was being supplied to the hamlet by the then Town of Wiarton since 1997 and it continues to be supplied by the Town of South Bruce Peninsula.
Residents who get their water from the Oxenden system will see an average increase of about 63 percent or $51.32 a month.
The increase includes a 60 percent surcharge which is down from 75 percent that was initially suggested.
Mayor Dwight Burley says the increase was due to the fact that Oxenden residents were getting the water at much cheaper rate than the residents of Wiarton.
He says both municipalities have been trying to hammer out an agreement since 2015 and, since the increase is retroactive from that year, it will take two years before Georgian Bluffs can settle their debt with South Bruce Peninsula.
Burley says the reason they are continuing to allow South Bruce Peninsula to supply water to Oxenden is because it is too expensive to have Oxenden on their own water system.
He says the cost is unbelievable and it is not feasible for the Township.
A report to Council suggests despite the increase, water rates for Oxenden residents will still be cheaper than the Shallow Lake water system and the Pottawatomi water system.