Cough up
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Did you not agree a meter reading with the previous owners? Personally, I would try to deal with with the water company only charging for what I have used first.
You may need to take your ID card to the customer service desk to prove you aren't them. I work for a cable company and we work with people who can show us they are not the delinquent owners and waive the restoral fees.
water bills don't quite work that way though..
That's actually not entirely true. I recently bought a house where the previous owner owed water company and gas company. I had to show proof that the house was now mine & I was not responsible for any previous bills. They can't make me pay considering I did not rack up these bills.
You need a lawyer
This is illegal. You can take care if it.
There should be a basic locker room you can use...hope you get it straightened out soon...
Keywords
Show them your lease agreement?
It's easy enough to prove you aren't them. Show the water company the deed to the house in your name, if you purchased it, or your signed rental/lease agreement. It will involved actually going down to the water district offices but it's better than paying a bill you don't owe.