The Consumer Council for Water South West (CCWater South West) said the rebate was good for customer relations, but consumers were still paying a "disproportionate" price for water services.

BBC: Water customers have not been given a rebate since 1998

An agreement in 1996 to share water from the Ganges river during the dry season has helped to improve relations with India, although Mr Vajpayee and Sheikh Hasina have so far been unable to agree to share water from another 50 rivers.

ECONOMIST: Bangladesh

Relations between India and Bangladesh have been strained for years over sharing water from the Ganges.

BBC: Analysis: Poor management of resources

With 148 countries sharing at least one transboundary river basin and two thirds of the world's 276 river basins being shared by two countries, cooperation is the key to preserving water resources and protecting the environment, but also to fostering and maintaining peaceful relations within and among communities.

UNESCO: Water cooperation: more urgent than ever