Watercare is increasing the price of water and wastewater in Auckland by 2.5 per cent.

The company announced the rise yesterday, just days after Auckland Council voted for a rates increase.

It estimates the average household's combined water and wastewater charges will increase by about $1.75 a month from July 1.

Water prices will increase from $1.375 to $1.409 (including GST) per 1000 litres for all customers. Waste water for domestic customers will increase from $2.336 to $2.394. The standard fixed annual wastewater fee for all customers would remain at $200.

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Watercare chief financial officer Brian Monk said the adjustment was necessary "due to the increased costs of service delivery and the need to invest in infrastructure to cater for Auckland's growing population".

"We are planning to spend $4.7 billion over the next 10 years on new water and wastewater infrastructure," he said. "These projects are essential to ensure Aucklanders enjoy a safe and reliable water supply."

Mr Monk said growth-related infrastructure is funded by a combination of service charges, infrastructure growth charges and borrowing.

Watercare does not receive any funding from property rates paid to the Auckland Council, Mr Monk said.