COUNTRY Victorians could be hit with higher water prices earlier than expected. 

Cash-strapped Coliban Water  is blaming the drought for the proposed rise.

Under a new pricing proposal, families in Bendigo, Castlemaine or Kyneton using 170 kilolitres will have an annual price increase of about $91 compared to the increase of $60 set to take effect on July 1 this year.

Any price changes to the Essential Service Commission's five-year water plan must only be made in "unforeseen circumstances", an ESC spokesman said.

He said a rewrite of the plan - which began in July 2008 - was not required to adjust prices.

Last November, a Victorian auditor-general's report found the water industry's net profits had dipped by $197 million, or 44 per cent, in 2008-09, with many plunging further into debt to fund infrastructure works.

The report identified Coliban Water as a "high financial-sustainability risk", partly because of the drought.

Coliban Water will submit its proposed bill changes to the ESC on March 10 and will hold community meetings to discuss the rises.

A decision whether to approve the hikes will be made by the ESC in June.