The man in charge of Toronto's water system says conservation efforts are working, but water rates are going up anyway.

"This is the second year in a row we are forecasting a decrease in consumption," said Lou Di Gironimo. 

Di Gironimo said low-flow toilets, the efficiency of new condominium towers and more houses with meters mean people are using less water. That saves the city money because less water has to be treated and pumped. It also cuts down on greenhouse gas emissions.

"This will lead to reduced electricity and chemical use at our water treatment plants and lessen the ecological footprint of producing potable water," he said.

But in spite of conservation gains, the water rate will still go up by nine per cent, mostly to pay for the replacement of old pipes, some of which are a century old.

Some councillors say that even with the increase, Toronto still has some of the cheapest tap water in the country.

"The average family in Toronto spends $965 a year on alcohol. The average family spends $554 a year on water," said Councillor Howard Moscoe.