If you receive an account during the pre-settlement period, be sure to call your settlement agent before paying it. Otherwise you do not need to do anything as all rates will be adjusted at settlement.
Why are you holding monies for water rates? I have paid every account I received on time.
A reading of your water meter is arranged for settlement date. Once the account is received, the amount due is calculated and paid and the balance refunded to you.
Rate notices are not received at the time of initial settlement statements so monies are held in reserve if any rate payments are due. If you have fully paid your rates for the financial year you will receive a refund.