Talks between Fine Gael and Fianna Fáil on the facilitation of a minority Government will centre on water charges when they resume later.
Last night the parties insisted no deal had been done in the area and that they had not even discussed Irish Water yesterday, despite reports they had reached a compromise deal.
Fine Gael's Simon Coveney said: "We didn’t actually deal with water...(A deal) isn’t agreed despite some of the things we're reading, but we'll be back to it."
The reported deal on the table would see the commercial semi-state go into full public ownership as a state company and charges suspended until a different regime can be put in place.
That led to a cool reception from Fianna Fáil TDs who said it did not deliver enough of what they promised in the election.
And others said the talks were not going to be limited to water in any case, with many other issues to be ironed out.
Fianna Fáil's Barry Cowen said: "There are many other areas where we haven’t reached agreement, in relation to childcare (and) the health service waiting lists and education, and many services that people rely on."
The talks will resume later this morning. Both sides confirmed they will continue throughout the weekend if necessary.