The government has published the long-awaited Water White Paper, setting out a “once-in-a-generation” plans to overhaul the water system.

Published by the Department for Environment, Food and Rural Affairs (Defra) it sets out powers for a new industry regulator, with the aim of tougher oversight and stronger accountability for water companies.

For the first time in two decades, a chief engineer will sit inside the new single water regulator. Defra says this will bring back the “hands-on checks of water infrastructure Ofwat has failed to provide,ending the days of water firms marking their own homework, resulting in crumbling pipes and unreliable services”. 

The new regulator will introduce an “MOT” approach for water company infrastructure, requiring health checks on pipes, pumps and more. This forward-looking approach means no more waiting to act, spotting problems before they happen and preventing water shortages.

The reforms aim to put prevention first, requiring companies and bosses to plan for the long-term. Where companies fall short, a new Performance Improvement Regime will give the regulator the power to act fast and fix failures so that underperforming water companies recover faster, protecting customers and the environment and giving stability to investors. 

The Water White Paper is the government’sresponse to the Independent Water Commission’s review of the sector – led by Sir Jon Cunliffe and published in July 2025. This review recommended major reforms, including replacing the current fragmented regulatory system with a single, powerful regulator.

Today’s announcement also includes a roll-out of smart metering and mandatory efficiency labels on items like dishwashers and washing machines which will help households monitor their water use and cut costs – delivering savings of over £125m million on water and energy bills over the next decade.

Building on last year’s plastic wet wipes ban, the White Paper prioritises pre-pipe solutions that tackle the root causes of pollution through sustainable drainage, rainwater management, and cracking down on sewer misuse.

Environment secretary, Emma Reynolds, said: “These are once-in-a-generation reforms for our water system – tough oversight, real accountability, and no more excuses.  Water companies will have nowhere to hide from poor performance, customers will get the service they deserve, and investors will see a system built for the future. This builds on the tough action we’ve already delivered, from record investment to banning unfair bonuses.”

Publication of the White Paper has been broadly welcomed by industry.

Kate Jennings, chief executive of ACE Group, said: “We welcome the government’s Water White Paper and its focus on building a resilient, forward-looking water system. The priorities for our members have always been rapid delivery of long-term water planning, strong governance, and a central role for engineering and environmental features in design, appraisal, and assurance. This White Paper is a step-change in meeting that.

“Our sector has global expertise in turning these ambitions into practical, cost-effective solutions. With clear delivery mechanisms and close collaboration with Government and industry, the UK can strengthen water resilience while supporting growth and high-quality jobs and our members will be integral strategic delivery partners in achieving the aims of the white paper.”

Sam Gould, director of policy and external affairs at the Institution of Civil Engineers, added: “Introducing a chief engineer role as part of the new water regulator puts engineering expertise at the heart of the sector. This is necessary to address complex issues that the industry’s grappling with, like sewage spillage, decarbonisation, and maintaining ageing assets.

“Taking an MOT approach to water infrastructure will offer reassurance to the public that clean water supply is a top priority for companies. Smart metering and efficiency labels on white goods will also help people manage bills, which is never bad news. Although the industry will need time to digest the details of the government’s white paper in detail, the ICE welcomes these flagship intentions.”

Mike Keil, chief executive of the Consumer Council for Water, said the “miserable disruption” faced by people in parts of Sussex and Kent in recent weeks underlines why meaningful change in the way water companies are regulated and treat their customers is desperately needed. Closer and more thorough scrutiny of how companies are maintaining their networks would be a welcome step to rebuilding consumer trust, which is at an all-time low.

“Over the past year CCW has seen more than a 50% rise in customers turning to us for help with complaints about their water company, so we’re delighted the government is committed to introducing a powerful new ombudsman service. One of our key asks of the Independent Water Commission was to make our existing voluntary ombudsman service mandatory, as this is vital to giving customers robust protection.

“People are impatient for change and we must not lose sight of the fact that water companies have always had the freedom and power to do what is right for their customers – whether that’s being more open about their financial structures or taking better care of customers during disruption. Regulatory reform has got to come hand-in-hand with changes in the culture and accountability of the water sector.”