Macao's domestic users of tap water will be charged under a three-tier water-charged system from Jan. 1 next year, the Macao Post Daily reported on Tuesday.

The newspaper quoted Susana Wong, Maritime Administration Director of Macao Special Administrative Region (SAR), as saying that the new system was meant to encourage water conservation.

Unlike the current system, which charges both commercial and domestic users a flat rate of 4.39 patacas per cubic meters, the new system will charge domestic, non-domestic and "special users" differently, Wong said at a press conference Monday.

Domestic users will be divided into three segments. Households using less than 29 cubic meters of tap water in a two-month period will be charged 4.35 patacas per cubic meter, while households using between 29 cubic meters and 56 cubic meters will be charged 4.83 patacas per cubic meter. Those using 57 cubic meters or more will be charged 5.27 patacas per cubic meters.

As for non-domestic users such as businesses, government offices, schools and hospitals, the charge rate will be 5.27 patacas per cubic meters, an increase of 20 percent from the current fee.

The new system's "special users"are casinos, hotels, saunas, golf courses and public work projects that will be charged 5.80 patacas per cubic meters, up 32 percent.

The new system was expected to reduce the government's tap water subsidy paid to Macao Water by some 40 million patacas (five million U.S. dollars) to 30 million patacas (3.75 million U.S. dollars) next year, Wong said, adding that about 61 percent of all domestic users were expected to pay less than now after the new system takes effect.