The Government's water services pricing policy framework requires that the costs of providing water services to non-domestic users be met by those customers by means of a meter based volumetric charge and that the associated domestic costs be met in a transparent way from the local government fund. This policy is being progressively implemented in the period to 2006. In determining general purpose grants by my Department from the local government fund, account is taken of the cost to local authorities of maintaining and operating domestic water services. These grants are about to be notified to authorities for 2004. Pending full implementation of the policy framework, I am providing targeted additional funding in 2004 to provide particular assistance to certain local authorities who are incurring operational costs as a consequence of the commissioning of new treatment plants.