First-time water customers and those with a history of non-payment could have to pay a $100 deposit to Danville before getting water service.
Property owners are exempt from the initial deposit.
Danville City Commission asked city staff Monday to draft a policy.
City Manager Darrell Blenniss said staff is getting better at catching people who move within the city and leave unpaid bills, but the city has problems with tenants who leave town. These problems were especially high among renters.
The city had some questions about whether the property owner or the tenant should be responsible for unpaid water bills.
If the suggested policy passes, then tenants will be responsible for their own water bills.
Tenants will have to leave a $100 deposit unless they can provide a record of good standing with their previous water utility, or have been in good standing with Danville for the past 12 months.