Customers are billed every month, with their water consumption estimated every alternate month.
With smart water meters, water consumption will be read automatically several times a day, and transmitted accurately and remotely back to PUB on a daily basis.
The agency said this will improve resource efficiency and augment PUBs capabilities in early leak detection within the water supply network and in customers premises.
Through a mobile application or online portal, every customer will have ready access to their daily water usage data. They will also receive high usage notifications and leak alerts promptly.
Pilot trials in Punggol and Yuhua earlier showed promising results.
A total of 800 households reported an average of 5 per cent in water savings, said PUB.
PUB on Friday called a tender to appoint an Advanced Metering Infrastructure Specialist to evaluate and advise on meter devices and technology, and communications protocol, as well as to provide insights for enhancing operational efficiency and water savings.
It will then call the tender for the installation of around 300,000 smart water meters early next year, and the first smart water meters will be installed by early 2021.