Water Reform and the Role of Agroforestry

Sir Jon Cunliffe’s Independent Water Commission has published its final report, laying out 88 recommendations for a “total reset” of the water sector in England and Wales. The review addresses governance, regulation, infrastructure, environmental objectives, and long-term strategic planning. While its scope spans the entire water industry, several proposals will have profound impacts on both forestry and agriculture, reshaping how land managers, farmers, and foresters access, manage, and protect water resources.

Impacts on the agriculture sector

A central theme is the integration of water management across sectors. Nine new regional water system planning authorities, eight in England and one national body in Wales, will coordinate demand from agriculture, forestry, industry, and urban development, ensuring local voices inform investment and abstraction limits. The National Farmers Union (NFU) has already urged government to guarantee agricultural representation on these bodies to balance environmental goals with food security and economic viability.

Key agricultural impacts include:

• Abstraction licensing reform – Stricter controls on water take from rivers and aquifers will require farmers to review irrigation strategies, adopt efficiency measures, and potentially invest in storage or reuse technologies.
• Nutrient management – Catchment-based plans will more tightly regulate run-off from fields to curb algal blooms and meet higher ecological standards, obliging growers to implement buffer strips, cover crops, and precision application systems.
• Tariff changes – Wholesale water charges for large agricultural users may shift to reflect scarcity, incentivising on-farm rainwater harvesting, controlled drainage, and water-efficient machinery.
• Public health objectives – New standards for microbial and chemical pollutants (including PFAS and microplastics) in water run-off will drive closer collaboration between farms, regulators, and industry bodies to monitor emerging contaminants.

What to watch out for

Land managers should closely monitor the government’s forthcoming White Paper and the promised Water Reform Bill, which will translate the Commission’s recommendations into legislation. Watch for:

• One-out-all-out rules under the Water Framework Directive – Potential revisions may ease the “one failure sinks the status” approach but could also tighten targets where multiple pressures overlap.
• Metering and data – Compulsory metering of all abstractions may be introduced, paired with digital reporting platforms giving regulators real-time visibility on water use.
• Catchment partnerships – Greater coordination between Environmental Agency flood committees, catchment partnerships, and new planners will redefine funding eligibility for agri-environment schemes.

Legal Impacts on Forestry and Agriculture

The Commission recommends abolishing Ofwat and merging economic, environmental, and drinking water regulation into a single integrated body in England (and folding economic duties into Natural Resources Wales). This consolidated regulator will wield expanded enforcement powers, including:

• Enhanced licence conditions – Farming and forestry operations linked to abstraction licences or nutrient discharge consents will face stricter “public benefit” clauses and minimum capital requirements similar to utilities, elevating compliance duties.
• Stronger sanctions – Digital monitoring, third-party audits, and increased fines for non-compliance will heighten legal risk, prompting land managers to bolster record-keeping, risk assessments, and stakeholder engagement.
• Statutory planning authority – Regional water authorities will have legal authority to approve or veto development proposals when water system capacity is constrained, potentially affecting new planting schemes or farm expansions.
• Investor certainty – Clearer, longer-term National Water Strategies (25-year horizons with interim milestones) will shape credit assessments for forestry funds and agribusiness lenders, making land-based enterprises more attractive to low-risk capital.

Act now to stay ahead of the change

The proposed reforms will reshape the legal and operational landscape for farming and forestry. Don’t wait to review your abstraction licences, engage with catchment plans, and prepare your business for the shift. Getting involved early gives you the best chance to influence outcomes and secure your water future.