The Government’s approach to the management of sustainable water resources is the “twin track” approach which involves the consideration of demand management alongside sustainable resource development. The Environment Agency has a duty to secure the proper and efficient use of water resources in England and Wales. This includes the regulation of water abstraction from sources of supply including rivers, lakes, canals and underground sources through a system of licensing, to minimise damage to the environment.
Water companies have water resource management plans which look ahead 25 years and include projections of current and future demands for water. These plans are regularly updated to account for factors such as projections of household numbers and occupancy rates and the implications of climate change. The plans are due to become a statutory requirement in 2007.
Water companies also have drought plans to ensure the security of the public water supply in periods of drought. The Water Act 2003 has made the production of such plans a statutory requirement. The plans contain a series of steps, which cause the company to initiate a range of actions depending on the severity and extent of the drought.