Water bills will rise by an average of £31 a year over the five years from April, the industry regulator has said.
The increase is higher than the £19 a year off-water proposed in July, but less than the water companies requested.
Offott said the increase was enough for water companies in England and Wales to pay for upgrades and reduce sewage discharges.
However, the £31 increase is before inflation increases so the actual bill is likely to be higher.
The water industry has come under fire in recent years for leaking and discharging sewage into rivers.
But Ofwat said the higher bill would pay for a £104bn upgrade for the sector.
David Black, chief executive of Ofwatt, told the BBC that the investment would “significantly reduce sewage discharges, further reduce leakages, and improve services for customers”.
Bill increases vary by region. Southern Water customers will suffer the biggest increase, with bills rising by an average of 53% – £642 – by 2030.
Thousands of homes have southern water supply. Currently blockedMore than 58,000 properties were affected.
Wessex and Northumbrian water bills will see the smallest increase of 21%.
Thames Water, which is struggling under a huge debt pile, will be able to charge customers 35% more, with bills going up to £588.
Rebecca Sinker, a member of the Clean Water Action Group in Hastings, said the group is getting readings of bacteria in the ocean “on a safe scale.”
He said the region, which is covered by the southern waters, depends on the sea for its fishing and tourism industry.
“They are not working with the maintenance of the infrastructure and that is why we are angry at the increase in the cost of the bill,” he said.
“We don’t trust them to spend their money properly, and we can’t go anywhere else for our water. It’s a private company monopoly.”