The Knesset approved a law on Tuesday evening proposed by Finance Committee Chairman Moshe Gafni (UTJ) not to renew the drought levy.
The levy, which increased the cost of water above a certain amount by NIS 20, was supposed to go back into effect in the coming weeks ahead of the summer.
Coupled with the increase in water prices in January, it was a burden the public could not bear, Gafni said.
The drought levy was introduced last summer to encourage the public to conserve water. According to the National Infrastructures Ministry, it brought about a 15-percent drop in consumption before it was frozen ahead of the winter.