Bermuda?s expanding population could cause severe water shortages in the future, an Opposition MP has warned.

Shadow Works Minister Jon Brunson told the House of Assembly on Monday that steps needed to be taken to ensure adequate water was available.

He said: ?Bermuda is growing. It?s expected that Bermuda?s population is going to be 74,000. Demand on our water system is going to increase. ?

He asked Finance Minister Paula Cox, who delivered the Budget Brief for the Ministry of Works and Engineering to the House, what would happen if there was another summer drought.

?Are you going to bring another tanker of water in to help resolve that issue?? he asked. ?Are you going to do it and are there provisions to make that happen??

Ms Cox earlier admitted to Parliament that Bermuda?s water production system was still ?severely challenged? during periods of the year when there was little or no rainfall.

She said: ?To address the shortfall of water availability to better prepare for low rainfall conditions and to meet increased water demand in the future, steps need to be taken to increase infrastructure maintenance and to add new production, distribution and storage capacity to the water system.

?Using lessons learned from the 2005 summer drought, measures will be introduced to plan for and reduce the impact of the next drought condition.?

She said almost $2 million had been set aside in this year?s Budget for a seawater reverse osmosis plant at By the Sea ? the former ZFB broadcasting station ? near Tynes Bay, due to open in 2007 or 2008. The plant is aimed at addressing water needs in the central and eastern parts of the Island.

The 2005 drought also prompted the Government to extend the Tudor Hill Treatment Plant for the West End.

Ms Cox said funds had also been set aside to address the need for extra water capacity in St. George?s.

The Government plans to run another Water Conservation Week this year to raise awareness about proper water conservation practices.

It is also drawing up a ?water master planning exercise?, along with the Bermuda Land Development Company, Wedco and the private sector water industry, to assess the Island?s water demands for the next 20 years and beyond.

Ms Cox said: ?The plan will enable staff to make logical decisions on the most cost-effective ways of meeting future water needs for a sustainable Bermuda.?

A new water meter reading and billing system is to be introduced this year which Ms Cox said would increase efficiency and reliability.

The Ministry is also planning to evaluate the Island?s sewer system.