Tasmania's water and sewerage corporation is facing more anger over charges to industry.

Vegetable processor Simplot has revealed its Devonport factory is struggling with a huge hike in its water bill.

The company is reviewing the factory's future because of rising costs of production and falling profits and hundreds of jobs are at risk.

Simplot wants TasWater to review a $2 million increase in its water bill.

The Devonport City Council voted last night to write to TasWater, urging it to scrap the planned increase.

Mayor Steve Martin says hundreds of jobs are at risk if water and sewerage costs make the operation unviable.

"It's about having a balance between employment and user pays, and it's very important that TasWater can see the other side of the ledger, that it's...putting at risk 280 jobs," he said.

"Whilst Simplot does use the infrastructure and has to pay its fair part, it's about 280 jobs from the Devonport municipality and the flow-on effect that is has on our municipality and the business sector that we have here."

Yesterday, businessman Errot Stewart spoke out about high water charges saying they were the single biggest inhibitor of development on the island."

He warned other businesses and developers would walk away unless the issue was addressed.

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