Wasa's 25 percent hiked tariff has been in effect since April 1.
Justice M Enayetur Rahim's issued the embargo after holding a virtual hearing on a writ petition.
Attorney General Mahbubey Alam and deputy attorney general Amit Talukdar represented the state while Barrister Anik R Haq and Barrister Tanvir Ahmed stood for the petitioner.
Barrister Tanvir Ahmed said Wasa has been realising 25 percent extra charges from customers since April 1.
The High Court on Monday restricted Wasa from reasiling additional tariff till August 10.
On June 15, Advocate Tanvir Ahmed filed a writ petition challenging Wasa's decision to hike tariff without improving its services.
On April 1, Wasa increased the 25 percent water tariff for residential users and 8 percent for commercial users.
According to the new tariff, per thousand liters of water is being sold at Tk 14.46 taka which is Tk 11.57 for residential users while per thousand liters of water is being sold at Tk 40 from the existing Tk 37.4 for commercial users.