Compulsory water meters could be introduced in the South West.
The government says compulsory metering could be the answer to the region's high water bills, with special reductions for vulnerable groups.
Environment Minister Phil Woolas said moving to universal meters would be "fairer" for all.
He said he is now asking the water regulator Ofwat to investigate. South West Water said it would await developments "with interest".
Strategy welcomed
Mr Woolas said the Ofwat review would report by the end of the year, but there would be a "long time scale" before compulsory metering became a reality.
"I've been lobbied very hard by MPs in the South West about the high charges that there are and come to the conclusion that a metering system would be probably fairer, as long as there are tariffs to protect the vulnerable," said Mr Woolas.
"At the moment it seems to be the people without meters who are subsidising the people with meters. So we are going to get Ofwat to look at the figures to see if I'm right."
The minister's comments came at the launch of a national water strategy on Thursday.
The strategy aims to reduce water usage to from 150 to 120 litres per person per day by 2030.
"Thousands of customers are discovering every year the benefits of switching to a meter, but meters will not suit every single customer," South West Water said in a statement.
"Our position has always been that we want to give customers the freedom to choose what is the best tariff for them.
"We do welcome the government's new strategy and await developments with interest."
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