Water rates are set to increase in the town of Stonewall.

Mayor Lockie McLean says ratepayers will see rates rise over the next three years to cover a $72,000 deficit in the town's utility fund.

"The deficit has to be recovered, it can't come from general operating. We've got a small rate increase in 2017, 2018 and 2019 to recover enough money to balance that utility fund out," says McLean. "...Rather than trying to recover it in one year, we'll recover it in three years so taxpayers don't feel a big shock in one year."

McLean says the quarterly impact on water bills for ratepayers will be an increase of about $3.50.

The town also has an application into the Public Utilities Board, McLean adds, to increase rates to ensure a continued deficit doesn't occur in the utility fund. The application was sent in 2016 and a response usually takes upwards of nine months, McLean notes. "The fear is: Walking into 2017 is we're still not recovering enough in terms of water bills and the costs we charge for them."