There are growing claims hefty developer charges are killing off projects and robbing the Tasmanian Government of revenue.

Ulverstone developer Jacob Weeda says he has been forced to scrap plans to build 10 houses on Eastlands Drive because TasWater is charging $40,000 to link them to the water and sewerage grids, making the project unviable.

Mr Weeda considers the cost exorbitant.

"The development had to be stopped because the costs don't add up," he said.

"By the time you add on all these on-costs, all the red and green tape, the margins are just not there any more.

"The water bodies, you're dealing with someone in Hobart, they don't even know where Ulverstone is."

The Liberals have pledged to scrap so-called "developer" levies for two years, if they are elected to government in March.

The Premier, Lara Giddings, says the charges are being reviewed by the independent economic regulator, which cannot do anything until a scheduled review in July 2015.

She says the fees are ultimately a matter for councils.

"We've worked with local government, in contrast to the Liberals who refuse to talk to local government about this issue," said the Premier.

"And we have worked with them to ensure that the independent regulator can ensure that the headworks charges are fair and reasonable."

Mr Weeda says it shows amalgamating Tasmania's three water boards into one entity has not worked.

"The obvious thing, and they won't listen, is to put the water and sewerage services back to councils," he said.

The Clarence mayor, Doug Chipman, says in some cases the charges are prohibitively high.

He has written to Tas Water's board to raise the issue.

"I think it's very important that we ensure that those charges are kept to a minimum, and we as the owner-councils I'm sure, certainly Clarence Council, very interested to make sure that those charges are as low as they can be," said Mr Chipman.