The Welsh Government has published a Green Paper setting out “once-in-a-generation” proposals for fundamental reform of the water system in Wales.
It says it will mean cleaner rivers, stronger regulation and better accountability.
Shaping the Future of Water Governance in Wales responds to the findings of the Independent Water Commission, established jointly by the Welsh Government and UK Government and published in July 2025.
The Commission undertook the most comprehensive examination of the water sector since privatisation.
Proposals include creating a new, dedicated Welsh economic regulator for water, supported by new legislation and a modern regulatory framework designed to encourage investment, protect the environment and deliver a water system that works for Wales.
Speaking at a Dŵr Cymru site at Lisvane and Llanishen reservoirs in Cardiff, the Deputy First Minister Huw Irranca-Davies said:
“Our ambition is clear and bold: clean and thriving rivers, safe and high-quality drinking water, fair and affordable services, and modern infrastructure ready for the future.
“We will strengthen accountability, rebuild trust and create a system that is simpler, stronger and more transparent.
“Wales now faces an urgent reality. Climate and nature emergencies, ageing infrastructure and public concerns about water quality demand decisive action. The system we have today was designed for a different era. It is time for a fundamental reset.”
Since 2022, the Welsh Government has invested more than £56 million to tackle water quality challenges through enforcement, monitoring and nature-based solutions. It said it had made progress on improving water quality but added that there is much more to do.
In 2026-27 the Welsh Government is set to invest £5 million in water quality, to strengthen enforcement and drive improvements in rivers and seas. This fund was first established as part of a Budget deal with Jane Dodds MS last year.
The Welsh Government said it was committed to creating a regulatory environment that supports long-term investment in Welsh water infrastructure while protecting the public interest.
It added that it will continue to work with the UK Government to seek additional legislative competence and bring forward a new Water Bill.
The Deputy First Minister concluded:
“The consultation is now open and we welcome views, evidence and insight from individuals, organisations and communities across Wales. I welcome your contribution to this national conversation.
“Together, we share a responsibility to leave our water environment in a better state than we found it—resilient, sustainable and ready for future generations. That work begins now.”
“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.“Welsh Government has acted decisively, and we now need to make sure that securing healthy waters for Wales is a priority for the UK Government and the next Welsh Government. Everything must be done to ensure the transition to a new body happens without delay to deliver long-term environmental recovery and affordability, alongside strengthened compliance and regulation.“It is positive that the Green Paper responds to my calls for civil sanctions and swifter enforcement, and cross-sector planning including agriculture, housing, transport and land use to prevent pollution and flooding.“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.”
