Shenzhen will raise water prices in a bid to ease shortages, with households facing a rise of 30 per cent and businesses more than 60 per cent if the proposal is approved this month.
The increase is bound to face strong opposition in the city, where many Hongkongers live or have businesses.
Li Yuet-leong, chairman of the Hong Kong Electroplating Merchants' Association, said his industry would suffer.
'It will only hurt our business,' he said. 'The water price generally is about 8 per cent of our operating cost. Now the authorities ask for a 60 per cent increase. It will just eat up our slender profit.'
A public hearing on the proposed price rise will be held by the Municipal Development and Reform Commission on January 21, The Southern Metropolis News reported.
Guangdong is struggling with its worst drought in decades. There have been reports that the severe drought that began in the summer slashed the province's rice harvest and cut farmers' incomes by one-third. Reservoirs, ponds and wells across the province, which provide drinking water to millions of residents, have dried up.
The price for industrial water use would rise 64.4 per cent from 2.25 yuan (HK$2.55) to 3.70 yuan per cubic metre. The price for residential use would rise almost 32 per cent from 2.85 yuan to about 3.75 yuan, but families would pay more for greater consumption. The unit price would rise to 5.20 yuan for amounts exceeding 30 cubic metres a month.