The party plans to use the 2007 Water Services Act to carry out prosecutions.
However, the Green Party said using meters to identify households that use excessive water remains the "fairest and simplest option".
Eamon Ryan TD said: "Fianna Fáil's obsession with playing politics with this issue, in an attempt to get one over on Sinn Féin and the AAA-PBP, is remarkable.
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"They would rather criminalise tens of thousands of households by dragging them through the courts, rather than use the water meters already installed to identify households with leaks and help them fix them.
"The water committee heard that 5% of households use a third of all water, most probably through leaks. Fianna Fáil's proposals have been exposed as lacking credibility and common sense."
He continued: "The Green Party's position on water has been consistent for a decade. We will continue to advocate for penalties for wasters of water. The water meters have been installed in 60% of properties. We have a huge job to do in detecting and repairing leaks both in the public network and on private properties."
(CD/JP)
