A three-year dispute between unions and Essential Water in New South Wales is ending, after workers indicated they would accept a new wage deal.

The state-owned water corporation’s offer is less than unions wanted, but it has gained in-principle acceptance, with the acknowledgement that members are worn out from the fight.

The bulk of recent disagreement related to Essential Water workers’ voluntary redundancy entitlements.

Essential has now imposed a cap on voluntary redundancy payouts, but the unions were able to win a 13-week extension on the company's original proposal for a 52-week cap in the negotiations.

After months of stoppages and work bans, the United Services Union says it is glad to have ended up with something that workers could give in-principle support.

United Services Union organiser Rudy Oppitz said “securing a three-year agreement at this point in time is good for the membership”.

“It gives us an opportunity now to see what actually happens over the next three years,” Mr Oppitz told the ABC.

“There was certainly a feeling from our members that … they felt that they've been harangued and bullied into this position.

“They feel that there's no other alternative, so they've gone ahead and accepted the in principle agreement.”

It was a sentiment echoed by Essential Water employee Shaun Bedford.

“Someone had to move in the end, we just had to do all the moving,” Mr Bedford told reporters.

“We definitely haven't won. I wouldn't really say we've lost either, but we definitely haven't won anything out of it.

He said morale for Essential Water employees was “crap, 100 per cent crap”.

“It's going to take a while to recover.”

The unions involved in the deal are now meeting to formalise their vote, before the deal goes back to Essential Water.

The water company declined to comment until it had formal notification of the decision by the unions.