An Enterprise Inns lessee is locked in dispute with Southern Water after receiving a £37,000 bill.
The case raises the question of who is responsible for maintaining water supply at a pub — the tenant, pubco landlord, utility company or insurer.
Shannon Wells, licensee of the Red Lion in Overton, Hampshire, initially thought the request for £37,000, received after 12 months at the pub, was a mistake.
The figure was later reduced to £14,000 after Enterprise arranged for a contractor to mend what Southern said was a leak.
Wells denied such a fault existed, saying the contractor could find no sign of a leak after four weeks — but decided to replace the waste-disposal pipe anyway.
Nevertheless, the water company demanded the licensee paid £14,000 immediately or the water would be cut off. This is despite Southern admitting that the "leak" had been fixed.
Shannon said he paid £3,000 on his credit card, yet the following morning the supply was turned off until 7pm, which meant the pub had to close.
He said: "We've cleared £5,000 now — £1,000 is going to Southern Water by direct debit every month. We are really starting to struggle. The next thing to do is to go to the small-claims court to find out who is responsible — the temporary tenant (we've just signed our lease), the landlord, or the insurance company."
A spokeswoman for Southern Water said: "The reason for the initial, high bill was a leak in the property owner's water supply pipe. By the time the repair had been carried out, the bill had risen considerably due to the excessive loss of water.
"Substantial arrears still need to be paid and we are working with Mr Wells to come to a payment agreement."
Russell Burton, head of property at Enterprise Inns, said all its tenants, whether on temporary or longer agreements, are responsible for utility costs.
He added: "We have now put the pub in contact with Power for Pubs to help determine if he can get a reduction in his water bill."