A Limerick management company has said it was a mistake to inform its tenants that they would be evicted if they did not pay the water charges.
It has emerged that the liability for unpaid bills will fall with the landlord, if a tenant refuses to sign up.
Limerick Residential Lettings had sent a letter to some tenants saying they would be evicted if they did not pay the charges.
But founder John O'Dwyer has now said that was a mistake and nobody would be evicted over the issue.
"I'll be sending out letters today to rectify that mistake. Nobody will be evicted (for not paying the charges)," he said.
Earlier, Finance Minister Michael Noonan said landlords did not have the right cut off the water supply to a house if a tenant failed to pay the water charges.
However, he admitted it was likely that landlords would raise rents to meet the cost.
His comments came after it emerged that the liability for unpaid bills would fall to the landlord if a tenant refuses to sign up for the utility.
Mr Noonan said the issues affecting landlords and water charges needed clarification, but that they cannot cut tenants off.
"They don’t have the right to cut off people. People need to have a water supply," he said.