Sydney residents will pay more for water during drought conditions, but less in the meantime.

New usage charges set by the Independent Pricing and Regulatory Tribunal will see the average water bill drop by $80 a year from July.

But the cost per kilolitre will rise by about a third when storage levels fall below 60 per cent.

NSW Water Minister Melinda Pavey told Ben Fordham it will encourage water conservation.

“That is the plan I’ve put forward so we can save water when going into drought.”

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