Anglian Water is cutting bills by 7%, around £29 per year for an average household.
The average annual bill will reduce to £402 per year, or £1.10 per day. Those with a water meter will pay even less, with the average bill dropping to £371.
The price cut is the biggest percentage saving for people, outstripping all other water and sewerage companies in the UK.
The lower bills are possible thanks to money saved through efficiencies being returned to customers, Anglian Water said.
The company pledged £5 billion to be spent on maintaining and improving essential services and a £60 million war on leakage.
In Lincolnshire, around £3.5million will be put into flood partnership projects and £3.5m invested in first time sewerage systems, connecting people to mains sewers
There are also flood alleviation schemes in Lincoln, North Hykeham, Huttoft, Barrow upon Humber, Immingham, Spalding and Skegness.
Martyn Oakley, Anglian Water’s Director of Customer Service, said: “We know household budgets remain under pressure. So we believe this price cut is timely and coming at a time when customers tell us they need it most.”