One regional mayor has staked his job on improving water costs.

Mount Isa Mayor Tony McGrady told a packed public forum this week that he would resign if water costs in the remote Queensland city do not decrease this year.

More than 200 people crammed into Mt Isa’s John Middlin Centre to question a panel about the current water crisis. Representatives of the local water board, council and Queensland Health officials were there to hear local concerns.

The city has taken some pretty drastic steps, such as moving to a sprinkler ban when water consumption exceeded filtration capabilities, and even warning residents they may have to boil their water as consumption could not keep up with filtration.

Queensland Health's Dr Steven Donohue assured the forum that Mt Isa water was safe.

“The tiny amount of mud that you would be drinking will not do you any harm,” he said.

“Provided there is not too much dirt in the water we can kill all the germs and at the moment the water does not have harmful germs in it and is safe to drink.”

Residents questioned the panel over the cost of the filtration equipment.

Mayor Tony McGrady told the crowd that extra water costs would be banished in the next budget.

“If I can't do that I will resign as mayor the following day, that is how confident I am,” he said.