Over water utilities, about $300 million has been wasted by the Bligh government, reports state.

Legislation will be repealed as announced by Queensland Premier Anna Bligh that made a tie up between three water utilities and councils in 2009 by her government and has costed the taxpayers about $80m.

Councils will be enabled to walk away from the utilities by this.

Every year about $125 will be saved for ratepayers by a cap on water price rises over the next two years that has been introduced by Bligh.

At the same time, there will be a rise of about 27 per cent in government bulk water costs that will make councils exposed to a funding gap.

According to the Bligh government an attempt had to be made to save people from water price rise and the move was stated to be a political stunt by Southeast Queensland mayors.

In Queensland politics, the key issue these days is cost of living and there has been an increase in it since former Brisbane lord mayor Campbell Newman burst on to the state political scene two weeks ago.