Midland will be removing the penalty rate -- or Multiplier rate -- applied to the usage between 10,000 and 25,000 gallons of water. The City Council made the decision in Tuesday's meeting.
Midland city leaders say they're lowering water rates since the Colorado River Municipal Water District is loosening its water-allotment restrictions and allowing Midland to purchase more water.
Midland leaders add that the lowered rates will have multiple effects.
"One of the things that does is it encourages the use of more water," Midland City Councilman, District 3, John James told Big 2. "Which on one hand is a good thing because the more water we use the more, we can pay for the pipelines -- which means the cheaper the rates are always. But it also means we're using more water and not conserving -- which is the downside."
The lowered rates will take effect on January 1, 2013.
Midland leaders also expect to ease water restrictions and allow people to water twice a week in 2013.