Senator Irungu Kang'ata will introduce a Bill in the Murang'a assembly to give the county government absolute control of Ndaka-ini dam.
Ndaka-ini dam is the main source of water supplied to Nairobi county and its environs.
The legislator said the proposed law will end wars between the county government and water companies operating in the region.
He said during a press conference at the county on Friday that the county government will now be able to get revenue from the dam.
A debate on whether the Murang'a county government should charge for the dam's water was sparked following the construction of the Northern Collector Tunnel in 2015.
Local leaders wanted Nairobi county to pay Sh1 for every cubic meter supplied.
They argued that the 11.8 kilometres long tunnel that taps water from three rivers would have long term environmental effects on the county.
Also read:
But Water CS Eugene Wamalwa said the national government will put up water projects worth Sh4.4 billion to compensate locals.
However, Kang'ata said there is need to give the county government full control over the water sector so that it can streamline it.
"The county government will now be able to levy some charges on Nairobi residents who use our water. The money will help to connect more locals with water."
The Senator said the chaos in the sector has been brought about by the fact that water companies do not answer directly to the county government.
"The county government is the single shareholder of water companies in their memorandum and articles of associations."
Kang'ata said he will implore upon the MCAs to consider the Bill during his maiden speech at the county assembly.
He castigated the Murang’a Water and Sanitation Company (Muwasco) managing director Daniel Ng’ang’a for recording a conversation between him and Governor Mwangi wa Iria.
The MD allegedly distributed the said talk on social media.
The audio was recorded after rowdy youths disrupted a board meeting at the company.
The protesters said the meeting was illegal since all the boards had been dissolved by the county government two weeks ago.
In the audio, Wa Iria is heard demanding to know why the director called for a meeting with a board that is already disbanded.
Kang'ata said stern action should be taken against Ng'ang'a for the 'shameful' action.
Read: