Mayor Bill de Blasio's proposed water credit has sprung another leak.

The mayor was planning to give more than 600,000 homeowners in the city a $183 credit on their water and sewer bills.

The proposal was largely criticized for not giving landlords credit while still raising their water bills by about 2 percent.

A group sued the mayor, and a state Supreme Court judge ruled against him back in June, saying the state's water board didn't have the authority to approve the credit.

An appeals court has now upheld that decision.

An attorney for the landlords says they're pleased that two courts have now sided with them. 

In a statement. the mayor said the ruling keeps money out of New Yorker's hands and that he will continue fight for the credit.