The decision means most people will pay more than £6 extra a year.
The utility giant said the increase for 2014-15 was only the second since 2009. Water charges are collected along with council tax.
From April those living in Scotland's most expensive homes will pay the highest annual bills of £821.70, compared with the charge of £273.90p for householders in the council tax band A.
However, most residents are in band D and will pay £410.85p - a rise of £6.39p - which is half of what the wealthy in band H will pay.