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Water supply and planning: no water, no growth?

As development aspirations accelerate, pressure on water resources continues to grow, and water supply is becoming a defining issue for planning and development. Amy Longmore-Gaskell, Associate Director, explores why a more integrated approach to planning and water infrastructure will be essential to support sustainable growth.

The availability of water supply has become an increasingly important consideration for developments that have high water use, including data centres, carbon capture proposals, sustainable aviation fuel proposals and hydrogen production.

This has created a growing challenge for planning authorities, developers and water companies alike, with concerns emerging around both long-term water security and delays to development and decision-making. 

Historically, water supply has not been a primary determinant of planning decisions. The planning system has generally relied on water companies to ensure that sufficient infrastructure is available to meet future demand. 

Through the statutory planning process, local planning authorities prepare Local Plans that identify future housing and employment growth, while water companies use these forecasts to inform their Water Resources Management Plans and investment programmes. National planning policy requires planning authorities to consider infrastructure needs, including water supply, when preparing development plans. 

However, the detailed assessment of water availability has often taken place separately from the planning process itself. This approach has generally worked where water resources have been plentiful and population growth has been manageable. Today, however, the context is changing. 

Growing pressure on water resources

There is increasing water stress driven by population growth, climate change and environmental constraints. The Environment Agency has warned of significant future water deficits in several regions, particularly in the South East and East of England. At the same time, stricter environmental regulations are limiting the ability to increase abstraction from rivers and groundwater sources. These pressures are beginning to have direct implications for development, which could in turn have consequences for economic growth.

Water companies may become restricted to provide sufficient supplies to support planned growth without major infrastructure investment. New reservoirs, water transfers and treatment facilities can take many years to plan, secure consent for and construct. As a result, development proposals may face uncertainty where infrastructure delivery timescales do not align with development growth targets. 

The challenge is not simply one of physical water availability. Delays can also arise from fragmented planning and investment processes. Local planning authorities, water companies, regulators and developers often operate on different timescales and under different statutory frameworks. This can make it difficult to co-ordinate growth aspirations with infrastructure delivery, particularly where large-scale strategic investment is required. Addressing these challenges will require a more integrated approach. 

Allowing for a more integrated approach

So, what’s the solution? 

Earlier engagement between planning authorities and water companies during plan-making can help ensure that growth assumptions are realistic and supported by evidence on future water availability. 

Strategic planning at a more regional scale (such as through Strategic Development Plans) can also play an important role, particularly where water resources and infrastructure networks cross administrative boundaries. 

Greater alignment between Local Plans, Water Resources Management Plans and infrastructure investment programmes would improve certainty for all parties. The Government’s ongoing planning reforms, together with the increased emphasis on infrastructure-led growth, provide an opportunity to strengthen this co-ordination. 

Alongside improved planning - demand management will be essential. Measures such as water-efficient design standards, smart metering, leakage reduction and sustainable drainage systems can help reduce pressure on water resources while supporting new development. In some locations, water recycling and reuse schemes may also become increasingly important. 

Water and sustainable growth

Ultimately, ensuring an adequate water supply is no longer solely an operational issue for water companies; it is becoming a fundamental consideration for the planning system. 

Accommodating future growth while adapting to climate change is fundamental and the successful integration of water resource planning and land-use planning will be critical to delivering sustainable development. 

To discuss the implications of water supply for planning and development, please contact Amy Longmore-Gaskell.

22 June 2026