Los Angeles businesses, landlords and residents will pay more for water starting June 1 if they don’t cut back at least 15 percent on usage under a plan approved Friday by the Los Angeles City Council.

The Los Angeles Department of Water & Power plan is aimed at sending water customers price incentives to encourage conservation.

The region is in the midst of a three-year drought, exacerbated by dwindling water allocations from the DWP’s Owens Valley aqueduct, the State Water Project and the Colorado River. Earlier this week, the Metropolitan Water District of Southern California, the region’s wholesale water supplier, announced it was cutting its allocations by about 10 percent, effective July 1.

Under the controversial DWP plan approved Friday on a 9-2 vote, customers who do not cut water usage 15 percent from previous-year levels will see their bimonthly water bills rise by an average of 10 percent. Customers who reduce usage by at least 15 percent will see water bills reduced more than 10 percent on average.

Council members initially rejected the plan last week, saying they were given too little notice. They also said the water agency’s planned campaign to inform residents and businesses about the impending rate hikes was inadequate.

On Friday, DWP General Manager David Nahai gave details of the marketing campaign and agreed to periodic reviews of the program and water supply projections.