Brisbane City Council is being untruthful concerning its increased water charges, the state Government says.

But the council quarrels the Government's line.

Queensland Treasurer, Andrew Fraser has called on the committee to clearly mention about its water business. Queensland Urban Utilities announced a standard increase of $107 for each annum for Brisbane residents.

Only $44 of the price increase is because of raised bulk water charges from the state, Mr. Fraser said.

The remaining $63 goes to council-owned water businesses, who deliver their bonuses and payments back to committee, he told reporters.

He said that the commission was not exposing the real story.

They require telling the entire truth here, not just an element of it, he said.

Mr. Fraser said that not like the council-owned QUU, which at present distributes water in regions of southeast Queensland, the state Government makes no income from water.

State Government increases water charges in large quantities that go directly to reimburse the $7 billion water net that has drought-proofed the southeast, Mr. Fraser said.

He challenged the Brisbane City Council to come clean that it will make a profit out of the augmented water charges.

Council's Finance and Administration Chairman Councilor, Adrian Schrinner said that money earned goes into offering services to the society.