Goulburn-Murray Water is chasing its long-term debtors, informing them it'll be taking legal action if bills are not paid or they don't make arrangements.
GMW Business and Finance general manager Michael Gomez said unpaid debts lead to larger revenue requirements and could unfairly burden customers who did the right thing.
He said GMW worked with customers who needed help paying their bills and had a multi-phase debt recovery program, which included various options for customers experiencing financial difficulties.
"GMW's 90 day debt balance is decreasing due to the increased focus on reducing outstanding debt," Mr Gomez said.
"The 90 day debt balance fluctuates during the year, but on average is about $11 million."
Most customers used those options if needed, but some had been in debt for a prolonged period or had neglected to seek help paying their debts.
To prevent these customers inflating costs for those paying their bills, GMW has sent long-term debtors a letter of notice informing them it will take legal action if they do not pay debts or enter into a suitable payment arrangement.
Mr Gomez said those customers have had many opportunities to pay their bills.
"Where customers are experiencing financial difficulties, we work with them to find a solution," Mr Gomez said.
"Our customers are always offered discounts for early payment, instalment options and customised hardship plans.
"We make every endeavour to contact customers through reminder notices, phone calls, letters, emails, SMS and in person."
If the customer had still not paid, G-MW suspended supply and contacted the customer again to try to make arrangements for payment of outstanding debts.
"If there is still no arrangement, we will take legal action," Mr Gomez said.
"The overwhelming majority of our customers do the right thing and pay their bills.
"GMW has a responsibility to these customers to keep our business sustainable, and debt recovery is a crucial part of this."
There has recently been plenty of good news for GMW customers.
GMW recently released its 2022/23 Price List with an average price rise of just 2 per cent, well below the Consumer Price Index increase of 5.1 per cent.
This follows an average price drop of about 10 per cent in 2020/21.
The Irrigators' Share Distribution Project also saw almost 13,500 customers receive a portion of the Connections Project's water recovery as either water shares or financial benefit.