The Government is reported to be considering linking payment of Irish Water bills to the €100 conservation grant.
It would mean that the grant available to everyone who registered for the utility would only be provided to those who pay their bills.
The Irish Times reports the measure is being considered following Eurostat's finding against Ireland on the controversial state utility.
It is one of a number of changes being considered by the Cabinet, along with keeping the capped water charges in place for at least a decade.
Also, it is believed that the Government is planning to keep the conservation grant in place, despite criticism from Eurostat.
A source said: "It will remain, not least for the people on group water schemes who are paying. We will link it to payment but there is no timeline."
Political Correspondent with the Irish Times, Fiach Kelly believes that the mooted move is designed to increase compliance.
Mr Kelly said: "The Government is considering a number of moves, including making sure that people who claim their €100 water conservation grant from the Department of Social Protection have actually paid their bills.
"Up to now you merely had to register with Irish Water, you didn't actually have to pay your bill to get the €100, but the moves the Government are considering would mean that only people who have paid their bills will get the money.
"In effect, it's an effort to drive up compliance to make sure that more people pay their water charges."
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