The Minister for the Environment, Mr Cullen, has rejected claims by Labour and Fine Gael that a new Water Services Bill would pave the way for the privatisation of water services.
Mr Cullen said it was also wrong to suggest that the Bill would lead to charges for the domestic consumption of water.
The Minister was responding to claims made by Labour's environment spokesman, Mr Eamon Gilmore, and his Fine Gael counterpart, Mr Bernard Allen.
Mr Gilmore said that Mr Cullen had presented the Bill as a measure to modernise water services but said it was "a Trojan horse for water charges and privatisation".
He said the Bill provided for the possibility of compulsory metering of water supplies. He said the provisions to license "authorised providers of water services" would sanction the privatisation of parts of the water supply system.
Mr Allen said the Bill would be used as a vehicle to make way for privatisation.
But Mr Cullen said the Bill had "nothing whatsoever" to do with privatisation of water supplies. "The new licensing system for larger group water schemes is about ensuring good water quality for these schemes - a sector generally unregulated up to now," he said.
"The position on water charges is not changed one iota by the Water Services Bill. The Bill makes no reference whatsoever to charges for domestic water users," said Mr Cullen.
"As is currently the case, commercial consumers of water pay for supply, domestic consumers do not. The Water Services Bill does not and will not change this situation."
The Minister's legislation will give local authorities the power to prosecute group water schemes for providing polluted water supplies. Current legislation means that it is virtually impossible for councils to take action against poorly performing group water schemes.
The bill will also give powers to the Minister to initiate legal action against local authorities if they fail to keep quality levels in line with the EU water directive.