There have been angry exchanges between Tánaiste, Joan Burton and Sinn Féin deputy leader Mary Lou McDonald over the Governments plans to allow deductions from wages and social welfare payments in the case of unpaid civil debts.
The proposal would lift the prospect of jail from those who did not pay their water charges.
Ms McDonald said that it was picking the pockets of those who could least afford it.
Tánaiste Burtom said that Ms McDonald was talking down to those on social welfare.
Earlier, Fianna Fáil health spokesperson said that thousands of families cannot afford to make a contribution to water charges.
Speaking during Leaders' Questions in the Dáil, he said Irish Water would be putting its hands in the pockets of people on social welfare and lower wages.
The Cabinet last night agreed to new compliance measures on water charges including requiring landlords to retain a tenant's deposit until evidence of payment is provided.
Tánaiste Joan Burton said the Government's decision was to distinguish between those who cannot pay and those who will not pay.
"There are deputies in this House earning around €80,000 gross. They can pay - but we know from record that they won't - but they want everyone else to pay for them," she said.
Ms Burton said this was not acceptable.
Sinn Féin deputy leader Mary Lou McDonald accused the Government of not caring about the living circumstances and struggles of the working poor.
"If they don't cough up, you'll stick your hand in their pocket anyway", she said.
She said the quarterly payment of €65 was beyond the reach of working families.
The Tánaiste repeated her earlier reply that those who can afford to pay should pay.
The Cabinet also approved proposals to allow attachment orders to be applied to wages and social welfare payments for general civil debts including water charges and to remove the option of sending people to jail.
The proposals were brought to Cabinet by the ministers for Justice and Environment.
Ministers signed off on the new measures to deal with general debt and water charges, the details of which were already made public.
A statement issued said the Government had agreed to the drafting of a Civil Debt (Procedures) Bill.
It will include provisions to stop imprisoning people for not paying their general civil debts and instead apply attachment orders to their earnings.
Safeguards are to be put in place in relation to this.
New compliance measures on water charges were also agreed.
Landlords will be required to retain a tenant's deposit until evidence of payment is provided.
This role will later transfer to the Private Residential Tenancies Board.
All new tenancy agreements must also state that the occupier is liable to pay the water charges except in relation to short terms lets where the landlord may retain the responsibility.
There will also be an obligation on a property owner to confirm that water charges are paid, before a property sale can be completed.
The details of the new measures will be examined by the Opposition today, which has been critical of the proposals.
Fintan McNamara from the Residential Landlords Association has said the Government is making an outrageous imposition on landlords regarding new legislation relating to water charges.
Speaking on RTÉ's Morning Ireland, Mr McNamara said it is going to be a huge problem, adding that it is unfair on both landlords and tenants.
He said the deposit will have to change and that three months deposit would be required.
"If this is to work effectively the deposit has to be trebled" to make allowances for issues like rent arrears.
He added that it looks like landlords will end up footing the water charge bill if tenants do not pay.
Mr McNamara said the ideal situation would be that each tenant have an account with which they deal directly with Irish Water and make their payments.
He said there is no need to make this process so complicated.
Mr McNamara said they will be meeting the minister again to see if they can change the course of action being taken.
