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.
