SHANGHAI - Residents in Shanghai will pay much more for water starting from August due to the implementation of a new multi-tier water pricing system, the municipal development and reform commission said Tuesday.

The rising costs of water treatment and the government's desire to conserve water are said to be behind the price rise.

Under the new system, the residential water fee will increase progressively as water consumption rises.

Shanghai has set three price brackets for residential users. A household that consumes 220 cubic meters of water or less a year will pay 3.45 yuan ($0.56) per cubic meter, up 23.2 percent from the previous price.

Households whose annual water consumption falls between 220 and 300 cubic meters will pay 4.83 yuan per cubic meter, while those consuming more than 300 cubic meters a year will pay 5.83 yuan per cubic meter.

The Shanghai municipal government held a hearing in late June to solicit public opinions on the price rise.