In its 2025-26 budget, the BMC declared that it would start levying water charges on unmetered properties. To this end they have already started a survey of properties to fix a rate for these water charges. But what does this mean for the people of Mumbai? Who will be affected by this?
Here’s what you should know about the decision that the BMC has taken.
What is an unmetered property?
Any premises which does not have a meter to measure the consumption of water is called an unmetered property. Most unmetered properties are in Mumbai City (excluding the suburban districts). The reason for this is that some buildings in that part of the city are so old, that they were built before water meters were installed. It was difficult to install or retrofit meters later in these congested streets, with buildings in close proximity to one another.
How are unmetered properties currently charged for water?
Unmetered properties pay water charges on the basis of the capital value of their premises.
Unmetered residential buildings are charged at the following rates:
- Water tax – 0.253 % of capital value
- Water benefit tax – 0.069 % of capital value
- Sewerage tax – 0.163 % of capital value
- Sewerage benefit tax – 0.043 % of capital value
Residential buildings include bungalows, duplex flats, apartments, tenements, row houses, pent houses etc. The premises considered for calculation include car park in stilt or basement, enclosed garage, podium, club house, society office, swimming pool, educational institutions and any other amenity in a co–operative housing society used by its members.
Unmetered commercial properties are charged at the following rates:
- Water tax – 0.620 % of capital value
- Water benefit tax – 0.170 % of capital value
- Sewerage tax – 0.400 % of capital value
- Sewerage benefit tax – 0.105 % of capital value
These rates are applicable to commercial and industrial users, multiplexes, stadia, hotels up to five star and above, enclosed garage for parking etc.
The full list of properties charged these rates is available here.
Read more: Explainer: Where does Mumbai get its water from?
Why, then, does the BMC want to levy separate water charges, as declared in its 2025-26 budget?
The Mumbai Municipal Corporation (Amendment) Bill, 2019 was introduced in the Maharashtra legislative assembly in June 2019. This bill said that the municipal corporation would not levy property tax on residential buildings and residential tenements in Mumbai having carpet area below 500 square feet or less. Since then, property tax has been waived off every year for housing units that are smaller than 500 square feet.
This waiver meant that residents living in unmetered tenements below 500 square feet have also been exempt from paying water and sewerage taxes over this period.To rectify this, the BMC declared in its 2025-26 budget that it would start levying water charges separately on the less-than-500-square-feet, unmetered properties, even while they remain exempt from property tax.
Since there is no way to measure consumption of water without meters, the BMC has carried out a survey of these residential units to fix the water charges.However, there is no information yet on what these charges will be based on, or how they will be calculated.
Who is going to be affected by the BMC’s decision to levy water charges?
Properties which are unmetered and 500 square feet or less in size will have to pay water charges once the BMC declares the rates at which charges will be levied.
However, if the property has a water meter installed, it will, regardless of its size, pay water charges based on actual consumption at the usual rates (see table below).
Read more: Rainwater harvesting: Why don’t Mumbai societies do enough?
How are metered properties charged for water?
In properties where water meters are fixed, water taxes are charged separately from property tax. They are charged at the following rates.
| Category | Water Charges |
| Informal settlements and adivasi padas which themselves take responsibility for operation and maintenance of pumping systems | Rs 5 per kilolitre |
| Informal settlements and adivasi padas where the corporation takes responsibility for operation and maintenance of pumping systems | Rs 5.28 per kilolitre |
Residential premises such as bungalows, row houses, apartment complexes as well non-residential premises such as free dispensaries, women’s hostel, balwadis, anganwadis, creches etc | Rs 6.36 per kilolitre |
The extended list is available here.
In addition, they have to pay water benefit and sewerage taxes, which is linked to the property tax.
Who will not be affected by BMC’s decision to levy water charges?
Properties which already have a meter fixed, or those unmetered properties which are larger than 500 square feet, will remain unaffected by this decision of the BMC because they are already paying a water tax.
What is a water benefit tax and a sewerage benefit tax?
Regardless of whether a meter is installed on a property, the BMC charges water and sewerage taxes based on the property tax. Water benefit tax is charged for the maintenance, operation and improvement of the facilities which provide water. Similarly, we pay a sewerage benefit tax for the maintenance of the infrastructure which disposes of sewage. For unmetered properties below 500 square feet (which enjoy property tax waivers), the new charges fixed will include these taxes as well.
Also read:
- Rainwater harvesting at Oval Maidan: Lessons for the rest of Mumbai
- How water crisis deepens gender inequality