"It would appear to me it would be quite costly rather than getting (water) out of a tap," Dr Dunn said.

"I have not yet been able to work out the reason for such extravagance with funds and resources."

A South Eastern Sydney Illawarra Health spokesperson said bottled water use at the hospital was based on ease of handling and patients' clinical needs.

"Bottled water is purchased very economically under the government contract," the spokesperson said. "Normal recycling systems are in place to minimise the impact on the environment."

Other hospitals in the South Eastern Sydney Illawarra Health area provide jugs and cups or use the Visy Closed Loop recycling system.

Dr Dunn said he could not understand why bottled water was introduced to Wollongong Hospital several months ago.

"I don't think it would be because of bugs around the place," he said, " because all the jugs would normally be washed and sterilised.

" I can't see that a jug on a locker would be any different to having a bottle of water that's been opened and half drunk and left on the patient's locker."

Dr Dunn said he hoped Premier Nathan Rees would include the hospital in his proposed ban of bottled water in government departments.

Mr Rees announced last week he wanted all government services not to renew their bottled water contracts, after the Southern Highlands town of Bundanoon became the first in Australia, and probably the world, to ban bottled water.