The cost of running a business in the Pilbara in Western Australia is much higher than anywhere else in Australia and even most places internationally, according to the federal government.
A report by Regional Development Australia found an average water bill in Onslow is 286% higher than what people would pay in Perth.
And compared to Perth, the cost of education is higher, private rent is 435% more expensive. The ABC reports even house insurance is 393% higher.
But despite the cost pressures, Karratha Chamber of Commerce & Industry chief executive John Lally said businesses were not doing badly.
"Some businesses are doing it harder than others, but in the main as a general rule, most of the businesses can afford to take some extra cost, providing they are getting it at the other end. It's basically cost in and cost out," he said.