US company Fiji Water says it will reopen its plant in Fjii on Wednesday, less than 48 hours after it closed it over a tax dispute.

The company says following discussions with Fijian officials, the bottling plant will open at 8am.

It says it has agreed to comply with a newly imposed tax increase on exported bottled water, Radio New Zealand International reports.

Last week, the interim regime announced in its 2011 budget that the levy would increase to 15 Fiji cents per litre, from the current rate of a third of a cent per litre.

Fiji Water responded by shutting its doors and laying off 400 workers. The company contributes more than $US70 million in export revenue.

The interim regime recently deported an American executive of Fiji Water, David Roth, for allegedly interfering in Fiji's domestic affairs.