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Residents of south-east Queensland could see their water bills slashed by an average of $80 a year thanks to a new initiative spearheaded by the state government.

As part of an election promise made by the Newman government earlier this year, steps are being taken to amalgamate bulk water entities.

This is an important step in the Queensland government's four-point plan to reduce water prices, according to the state's minister for energy and water supply.

Marc McArdle asserted that with up to seven publicly-owned water agencies operating within the state's supply system, it is time to streamline the process that takes place "between the dam and the household tap".

On Monday (June 18), he emphasised that his department is working on a number of measures that could help south-east Queensland renters and homeowners save.

Yesterday (June 19) he unveiled the South East Queensland Water (Distribution Retail and Restructuring) Amendment Bill - new legislation that will allow water businesses owned by local authorities to lower their operational costs.

The laws will bring workforce management at council-owned water businesses in line with other organisations.

Any cost savings made through the new legislation can then be passed on to household consumers.

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