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A Network of Local Reservoirs: Providing water resilience and security to unlock growth in the region

A Network of Local Reservoirs: Providing water resilience and security to unlock growth in the region

This report by the Eastern Powerhouse for East Cambridgeshire District Council sets out a transformative local solution to water insecurity hindering growth in the Fens. It proposes establishing a network of mid-sized agricultural reservoirs that capture winter river flows via Internal Drainage Boards, storing six to seven million cubic metres of water for use during drier months. Delivered in under three years at a fraction of the cost of large reservoirs, these integrated catchment systems can unlock housing and economic development in Greater Cambridge, support regenerative agriculture, and enhance biodiversity through peatland rewetting and wetland restoration. The report identifies regulatory barriers—fragmented licences, inflexible investment cycles and limited powers for drainage boards—and calls for reform to empower place-based leadership, flexible trading of raw water and outcome-based regulation. By piloting this model, East Cambridgeshire aims to become a national exemplar of resilient, democratic water governance that aligns infrastructure and planning with environmental objectives.

Published:
July 2025
Findings/Recommendations:
  • Pilot water market reform and regulatory innovation in East Cambridgeshire

  • Amend legislation to enable Internal Drainage Boards to lead on water storage and distribution

  • Expand the statutory role of local authorities in strategic water planning, to include regulators, utilities, and councils as equal partners

  • Introduce a duty on regulatory bodies (Ofwat, Drinking Water Inspectorate, Environmental Agency) to support a more agile and responsive approach to local water needs, including:

    • Local off take contracts that enable seasonal abstraction with trading

    • Stronger regional input into Price Reviews, outside the PR24 cycle

    • Reform of Drinking Water Inspectorate rules for local treatment

    • New Appointments and Variations (NAV) for wholesale access to water networks

    • Itroduce a regulated market for bulk raw water trading

  • Commission further evidence on the environmental and carbon benefits of this model

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