SYDNEYSIDERS face steep rises in water bills, despite making big reductions in the amount of water they use.

Workers at Sydney Water also appear to be the victims of their own success in encouraging greater water-efficiency savings.

Sydney Water is planning to make up to 80 jobs redundant while the state government siphons off $245 million in dividend payments from the state-owned corporation.

Sydney Water's statement of corporate intent, tabled in Parliament last month, shows the volume of water use is projected to fall from 496 gigalitres last financial year to 492 gigalitres this year and 492 in 2013-14.

It expects to make a profit before tax of $387.8 million this financial year and $693.3 million in 2012-13. Its income is forecast to rise from $2388.6 million this financial year to $2750.9 million in 2012-13 and $2888.6 million the following year.