Huw Irranca-Davies MS, Deputy First Minister and Cabinet Secretary for Climate Change and Rural Affairs
I am pleased to launch our Green Paper, Shaping the Future of Water Governance in Wales. 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.
The Green Paper sets out our response to the recommendations and evidence of the Independent Water Commission, published in July 2025, and sets out a pathway to cleaner water in Wales. The Welsh Government and UK Government jointly established the Commission to undertake the most comprehensive examination of the water sector since privatisation, recognising the urgency of cleaning up our rivers and seas and improving our water system. At its core, the review was about shaping a clear, shared vision of what people in Wales expect from their water system. The Commission was clear that this vision must be ambitious but achievable, rooted in the experiences of communities, and able to earn and sustain public trust.
This Green Paper marks the next step in that journey. The proposals represent a once‑in‑a‑generation reset of water governance in Wales. We are proposing a dedicated Welsh economic regulator for water, underpinned by new legislation and a modern regulatory framework that encourages investment and delivers a water system that works for Wales.
Water is essential to every part of life in Wales and over the past decade we have made real progress, improving drinking water quality, investing in environmental protection and enhancing support for consumers. Since 2022, we have invested more than £56 million to tackle water quality challenges through enforcement, monitoring and nature‑based solutions. We have made progress on improving water quality but there is much more to do.
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. It is time for a fundamental reset.
Our proposals place environmental protection, public health, and ecosystem resilience at the heart of water governance. People want cleaner rivers, coasts and lakes, and a regulatory system that is fair, effective, transparent and fit for purpose. Achieving this requires a whole‑system approach. This is not just about the water industry; it is about how every sector of our economy and society manages pressures on our water environment. Only through shared accountability can we protect this vital resource for current and future generations.
This Green Paper outlines the opportunity before us. Transforming our water system requires sustained investment and so investor confidence is essential. We are committed to creating a regulatory environment that supports long‑term investment in Welsh water infrastructure—from drinking water networks to nature‑based solutions—so the right projects happen in the right places and deliver maximum public value. A trusted and predictable regulatory environment will attract investment while protecting the public interest. Infrastructure fit for the future means jobs today and resilience for tomorrow. Building a modern, resilient water system will support skilled, long‑term employment across Wales.
Investor confidence matters, and so does accountability. That is why we support establishing a clearer legislative framework - one that enables regulators to act decisively and hold all sectors to account. And that’s why our ambition is to create a new Welsh economic water regulator with the authority and independence to act decisively for Wales. To deliver this, we must secure the necessary devolved powers. We will continue to work closely with the UK Government to seek additional legislative competence and bring forward a new Water Bill that places public value and environmental resilience at its core.
This Green Paper is not the final plan, but a high‑level statement of intent and an invitation to engage. We are seeking views, evidence and insight to help shape the next phase of reform, ensuring future arrangements are coherent, accountable and capable of delivering for Wales. I welcome your contribution to this national conversation.
This is a pivotal moment. Change is taking place across the UK, and we are committed to working with partners to ensure alignment where it matters, avoid duplication and support a smooth transition. 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.