The second stage of the Water Services Bill has been voted through by members of the Seanad by 31 votes to 26.
Four Independent senators, Marie-Louise O'Donnell, Jillian van Turnhout, Feargal Quinn and Fiach Mac Conghail, voted with the Government.
Earlier, Minister for Environment Alan Kelly told the house that if amendments were put forward during committee stage that would enhance or improve the bill then he would accept them.
However, he said he would not accept them for the sake of it.
It is understood a number of senators will table amendments calling for a referendum on the ownership of Irish Water.
Earlier, Mr Kelly said investment in water services was needed at a level "we've never comprehended or seen before".
The minister said there are 44 urban areas where raw sewage is running straight into rivers and the sea.
Minister Kelly said water will be the biggest issue into the future if something is not done about it.
The bill, which was presented to the Seanad by the minister this afternoon, will now go to committee stage.
The debate will recommence tomorrow morning at 10am.
Mr Kelly accepted that it became apparent that the charging regime was not publicly accepted.
He said the Government took time to reflect on the programme.
"I've often said the scale of the project and timescale was underestimated," he said.
He told senators that the Government had listened and responded with certainty, simplicity, affordability and conservation.
Earlier, Fianna Fáil Senator Terry Leyden said the Seanad was the centre of political attention today because of the decision Senators have to make.
He said it was not surprising that the Taoiseach "tried his utmost to destroy this house", because he said it would have resulted in the bill being signed last night.
Mr Leyden appealed to every member to "vote against the bill, vote down the Government, reject the proposals and let the will of the people speak through the house".
