The tough new measure targets householders in the drought-ravaged southeastern state of Victoria, where strict water restrictions are already in place to conserve dwindling supplies.

Poor rainfall has left the nation's dams depleted, forcing many cities to ration their water supplies by limiting the use of water for washing cars and watering lawns.

From January 1, Victorian officials will be able to reduce water pressure to homes whose occupants continue to breach restrictions after three warnings.

Victorian water utility South East Water said repeat offenders would have their supply limited to two litres (four pints) a minute down from 40 litres a minute for two days, a reduction likely to prevent the use of showers.

To restore their water pressure, offenders would have to pay a fee.

Victorian Premier Steve Bracks said the penalty would ensure most people complied.

"If they don't... then they (water monitors) will restrict flow in extreme circumstances when three or more offences have been committed," he said.

The increased powers to punish transgressors will coincide with the introduction of even more drastic limits in Victoria -- including a ban on filling new pools.