Homes in England and Wales should be installed with water meters in order to maintain a better record of water usage.
This is the opinion of the Environment Agency, which has recommended that households have meters fitted to monitor water use and reduce waste in the future.
A new report from the body claims that some areas of England and Wales have less available water than various parts of Morocco and Spain and outlines ways in which water wastage can be reduced up to 2050.
Head of water resources at the Environment Agency Ian Barker told the BBC that paying "per volume is the fairest way to pay".
He continued: "There are a number of areas where action is required, such as the need to allocate water resources more effectively in the future."
Last week, the agency outlined the risk to water supplies in north-west England from illegally-dumped vehicles which leak toxic substances and damage the area's ecosystem.