Papua New Guinea's state provider of water and sewerage services, Eda Ranu, is owed nearly 18 million US dollars in unpaid water bills.
The newspaper, The National, reports Eda Ranu's chief executive officer Henry Mokono saying most of the unpaid bills are owed by Government departments
He says the three disciplined forces - police, Correctional Services and Defence - owe the rump of these bills.
Eda Ranu is also reportedly facing an imminent crisis with its water treatment plant at Mt Eriama outside Port Moresby nearing full-capacity.
Mr Mokono says a new water treatment plant is urgently needed at a cost of US$300 million.
He says he has appealed to the government to move fast on a new treatment plant at Mt Eriama, adding that there is land available.
Meanwhile, Mr Mokono says the waste problem is reaching crisis proportions at the Waigani Swamp.