The company says the lion's share – 5.2 per cent – is due to inflation.
It adds that the water industry average increase from April is 5.7 per cent.
Anglian Water says its price rise means £530 million can be invested in improving services to customers.
This includes £13 million on the sewerage network to offer 584 homes in Lincolnshire the chance to connect to the mains for the first time.
People in Bishop Norton and Owmby-by-Spital, off the A15 north of Lincoln, are among those who will get the chance to switch from using a septic tank.
A further £40 million is being invested in a 63km pipeline from Covenham reservoir, near Louth, to Boston, which is under construction.
Once complete in 2013, it will be capable of carrying 26 million litres of water south every day.
And £14 million will allow the water treatment works at Elsham to be expanded to supply an extra 15 million litres of water daily to the growing number of businesses on the Humber Bank.
Anglian Water spokesman John Clare stressed that the main driver for the price hike, authorised by regulator Ofwat, is inflation.
"We recognise that these are tough times for people and no rise is going to be welcome," he said.
"But this rise equates to less than 50p a week.
"People should rest assured that the money we are spending is going into improving their services.
"We are putting in measures that will boost economic growth and support population growth.
"If people are struggling to pay then the most important thing they can do is call us as soon as possible so we can discuss alternative payment arrangements.
"It is important to remember that nine times out of 10, getting a water meter fitted will save you money."
Chris Taylor, 41, who lived with his family in a caravan for six months after their home in Scothern Lane, Langworth, was flooded in June 2007, said he felt investment is needed in upgrading pumping stations, especially in Langworth.
"Whenever we get heavy rain we cannot use our toilets," said Mr Taylor, who works in the recruitment industry.
"Anglian Water does need to invest but I think what is needed more is investment in pumping stations rather than mains sewerage."
Mum-of-five Caroline Stafford, 45, of Brattleby Crescent, Ermine East, Lincoln, said increases in any bills are hard to stomach.
"The cost of everything is going up but wages, for most people, are not," she said.
Regina Finn, chief executive of Ofwat, said it will ensure customers get value for money.
"If companies don't deliver on their investment promises, we will take action," she said.
