Major water governance shake-up proposed for Wales
Plans for a major overhaul of how water is governed in Wales have been published by the Welsh Government, launching a national consultation on proposals that could reshape regulation, investment and accountability across the water system for decades.
The proposals are set out in an 88-page Green Paper, Shaping the Future of Water Governance in Wales, which ministers describe as a once-in-a-generation opportunity to reset how water services and the wider water environment are managed.
At the centre of the plans is the creation of a new, dedicated Welsh economic regulator for water, supported by new legislation and a modern regulatory framework.
Alongside this, the government is proposing a national system planning function to better coordinate decisions on water supply, wastewater, river health and infrastructure investment.
In a written statement, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs Huw Irranca-Davies said the ambition was to deliver “clean and thriving rivers, safe and high-quality drinking water, fair and affordable services, and modern infrastructure ready for the future”.
He said: “Wales now faces an urgent reality. Climate and nature emergencies, ageing infrastructure and public concerns about sewage discharges demand decisive action. The system we have today was designed for a different era. It no longer meets the needs of our people, our environment or our economy.”
The Green Paper makes clear that many of the proposals depend on the UK Government agreeing to devolve further powers to Wales, including the legal authority required to establish a standalone Welsh water regulator.
Until those powers are secured and new structures are in place, economic regulation of Welsh water companies would continue to be carried out through England-based bodies, operating under policy direction from Welsh ministers.
Ministers also acknowledge that the scale of investment required to improve river health, modernise ageing infrastructure and adapt the water system to climate change is likely to exceed what customers can reasonably afford.
The document says this will require difficult decisions over priorities, affordability and the pace of change, with no suggestion that reforms can be delivered without trade-offs.
A phased timetable is set out, with legislative change expected later this decade, followed by a period of transition in which new planning and regulatory arrangements would be established.
Under current proposals, a fully operational Welsh economic regulator would not be in place until the early to mid-2030s.
The consultation also signals a shift away from what the government describes as fragmented and process-heavy planning, towards a more outcome-focused system.
This would seek to align regulation, planning and investment decisions around long-term environmental recovery, public health and resilience.
Proposals include greater use of nature-based solutions, stronger enforcement and monitoring, and action to reduce inappropriate materials such as wipes, fats and oils entering sewer networks.
Ministers say preventing pollution at source would reduce pressure on infrastructure, lower maintenance costs and improve environmental outcomes.
The Green Paper places particular emphasis on transparency and public trust.
Options are being explored for minimum environmental transparency standards, including public dashboards bringing together data on sewage discharges, river health and regulatory enforcement.
The document also raises the possibility of stronger routes for consumer redress and clearer accountability when standards are not met.
The proposals are framed within wider pressures facing Wales, including climate change, biodiversity loss and the need to maintain high standards across water bodies that cross the England–Wales border.
The government says closer coordination will be essential during the transition period to avoid unintended consequences for communities and the environment.
Responding to the launch, the Future Generations Commissioner for Wales said the Green Paper marked a critical moment for the sector.
The commissioner, Derek Walker, said: “This needs to be a wake-up for the water industry and is an overdue opportunity to fix the problems of the past and become a clean water abundant nation.
“Any investment in the water system must work urgently to restore nature, support food production, improve climate resilience and deliver new housing and infrastructure as we protect the long-term health of our rivers, seas and the water that’s essential to life.”
The Welsh Government says the Green Paper is not a final plan but an invitation to engage, with views, evidence and insight sought from communities, industry and stakeholders before decisions are taken on future legislation and regulation.
The consultation is open until 7 April 2026.
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