The Bloomberg Administration says it the lowest hike in eight years.
The higher price would take effect on July 1.
Since Mayor Michael Bloomberg took office, the water rate has increased every year, including four double-digit boosts beginning in 2008.
The water bill for a typical single-family homeowner is expected to hit $991 a year. The present amount is $939 annually.
New York City distributes more than a billion gallons of water each day to more than eight million residents.
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