5. Abstraction and impoundment of water

This section describes the mechanisms to control abstraction and impoundment of water, and mechanisms to protect water resources that are used for abstraction.

Under the Water Resources Act 1991 most abstractions or impoundment of water require a licence although certain exemptions apply. This applies to abstraction from ‘sources of supply’ such as

  • inland waters including

    • rivers
    • lakes
    • canals
    • reservoirs
    • tidal rivers
  • groundwater
  • docks, bays and creeks
  • arms of sea

The mechanisms to control abstraction and impoundment of water are as follows.

Water Resources Act 1991, Abstraction and impounding Chapter II of Part II (as amended by Water Act 2003 and the Water Act 2014):

  • The Water Resources Act 1991 makes it a requirement to hold an abstraction licence to take water from a source of supply (as described above) via a full, temporary or transfer licence, or an impounding licence to obstruct or impede the flow of any inland waters or to alter existing impounding works:

    • licence conditions manage impacts on the environment, for example, flows and resources
    • all new licences are subject to a time limit and upon renewal are reviewed and amended where necessary

An abstraction licence is not required for an abstraction of a quantity of water not exceeding 20 cubic metres in any period of 24 hours, if the abstraction does not form part of a continuous operation, or of a series of operations, by which a quantity of water which, in aggregate, is more than 20 cubic metres is abstracted during the period. 

Modification of licences under s51: licence holders may apply to vary or revoke their licence voluntarily.

Modification of licences under s52, s53 and s54: the Environment Agency may formulate proposals to vary or revoke a licence and where these proposals are objected to by licence holders it requires a direction from the Secretary of State.

Section 27 Water Act 2003; withdraws compensation for licence variations/revocations (for permanent licences) in pursuance of a direction under sections 54 or 56 of the WRA91 where such variation or revocation is necessary to protect the environment from serious damage.

Section 61(4) Water Resources Act 1991; withdraws compensation for licence variations/revocations in pursuance of a direction under sections 54 or 56 of the WRA91 where the licence has not been used for the previous 4 years.

Section 58 Water Act 2014 removed Water Companies’ right to compensation for licence variations/revocations in pursuance of a direction under sections 54 or 56 of the WRA91.

There are powers to deal with historic unlicensed impounding works under Sections 3 and 4 of the Water Act 2003.

Agreements under s20, 20A and s158 Water Resources Act 1991 allow operational arrangements with water companies and other abstractors to reduce the impact of abstractions, for example river support schemes.

Drought orders and drought permits under Chapter III of Part II Water Resources Act 1991 allow the amendment of controls on authorisations for abstraction and impoundments during droughts.

Restrictions under s57 Water Resources Act 1991 allow the Environment Agency to temporarily restrict abstraction for spray irrigation following an exceptional shortage of rain or other emergency.

Further requirements for owners and operators of reservoirs are set out under the Reservoirs Act (Reservoirs: owner and operator requirements - GOV.UK (www.gov.uk)).

Wildlife and Countryside Act 1981; s28I; new abstraction and impoundment licence applications need to be assessed to determine whether they are likely to damage a Site of Special Scientific Interest, and if they are Natural England must be notified.

Natural Environment and Rural Communities Act 2006 (NERC) s40; requires public bodies to ‘have regard, so far as is consistent with the proper exercise of those functions (for example, granting licences), to the purpose of conserving biodiversity’; the Environment Act 2021 includes provisions for:

  • amendments to the NERC Act
  • strengthening this duty to require public authorities to take action to enhance and conserve biodiversity
  • introduces a reporting duty

Salmon and Freshwater Fisheries Act 1975:

  • s9 and s14 require persons responsible for dams to (at their cost) provide and maintain fish passes and screens (that function to the Environment Agency’s satisfaction) in any waters frequented by salmon or migratory trout
  • under s11(1) ‘any approval given by the Environment Agency to or in relation to a fish pass may, if in giving it the Agency indicates that fact, be provisional until the Environment Agency notifies the applicant for approval that the pass is functioning to its satisfaction’

The Eels (England and Wales) Regulations 2009 (which partially implement ‘Council Regulation (EC) No 1100/2007 of 18 September 2007 establishing measures for the recovery of the stock of European eel’, ‘European Council Regulation on Eels’, or ‘Eels Regulations’):

  • require that ‘a responsible person must immediately notify the Environment Agency of any obstruction occurring since the coming into force of these regulations’
  • give powers to the Environment Agency to serve notices requiring eel passes on structures and obstructions
  • require the provision of screens on all intakes capable of abstracting at least 20 cubic metres per day, and outfalls, unless exempted by notice by the Environment Agency

Environment Act 2021:

  • sets out changes to abstraction licensing that will allow the Environment Agency not to pay compensation for permanent licence variations/revocations in pursuance of a direction under s54 or s56 of the WRA91, where the ground for revoking or varying a licence is that to do so is necessary to protect the water environment from damage or where the ground for varying the licence is that the licence holder has abstracted at least 25% less water than their licensed volume in every year over the previous 12-year period 
  • these changes will not come into effect until 1st January 2028

All new abstraction licences must have a time limit and this has been the case since 2001. Before then, most licences were granted with no time limit (for instance permanent licences), and some licences may have had an unacceptable effect on the environment. Although the Environment Agency has powers to amend or revoke these licences under the Water Resources Act 1991, compensation may be claimed by the licence holder. This is not applicable to water companies since the Water Act 2014 or in cases of serious damage (for permanent licences only) (section 27 of the Water AcT 2003).

The Environment Agency can re-assess the environmental sustainability of a time limited licence when the licence expires and the licence holder applies for a replacement licence. Where a time limited licence is not sustainable, a new licence will be granted on more restrictive terms or worst-case scenario, not at all. In these cases no compensation is payable.

The government removed most of the historic abstraction exemptions on 1 January 2018. The main exemptions that ended were for trickle irrigation, quarry dewatering, transfers of water for navigation and the previously exempt areas. The Environment Agency is currently determining applications for transitional abstraction licences for those people who were abstracting water for a previously exempt purpose. Bringing these abstractions into regulation will allow any sustainability issues arising to be addressed when the licences expire and the abstractors apply to renew them.

View the Abstraction licensing strategies (CAMS process) for further information.

5.1 Other plans and programmes

The Environment Agency continues to produce Abstraction Licensing Strategies to help ensure a consistent approach to managing water resources and balancing the needs of water users and the environment. They also help inform the public on water resources and the Environment Agency’s approach to licensing new abstraction in a particular area. Abstraction Licensing Strategies are set in accordance with WFD Regulations objectives.

The Water Abstraction Plan (2017) sets out how water abstraction management is being reformed over the coming years. It states how this will protect the environment and improve access to water. The plan has 3 main parts:

  • making full use of existing regulatory powers and approaches to address unsustainable abstraction

  • developing a stronger catchment focus – bringing together the Environment Agency, abstractors and catchment groups to develop local solutions to existing pressures and to prepare for the future; these local solutions will:

    • protect the environment by changing licences to better reflect water availability in catchments and reduce the impact of abstraction
    • improve access to water by introducing more flexible conditions that support water storage, water trading and efficient use
  • supporting these reforms by modernising the abstraction service, making sure all significant abstraction is regulated and bringing regulations in line with other environmental permitting regimes

The Environment Agency publishes Abstraction Licensing Strategies, to help ensure a consistent approach to managing water resources and balancing the needs of water users and the environment. They help inform the public on water resources and the Environment Agency’s approach to licensing new abstraction in a particular area. Specifically:

  • they provide a consistent and structured approach to local water resource management giving information on water resource availability (where and when) based on environmental needs
  • by 2027 will share information and approaches to ensure a stronger catchment focus is adopted in all catchments

Under the Water Industry Act 1991, water companies are required to prepare Water Resources Management Plans to show how they will manage and develop water resources to supply their customers. Water Resources Management Plans show how companies will balance water demand and supply over a 25 year period. Water Resources Management Plans should ensure an efficient, sustainable use of water resources. They should focus on delivering efficiently the outcomes that customers want, while reflecting the value that society places on the environment.

The Environment Agency sets out the environmental improvements that water companies must make in the Water Industry National Environment Programme (WINEP) every 5 years. Successive water company improvement programmes since privatisation of the industry have resulted in substantial benefits to the water environment. Water companies may need to make changes to their operations to deliver the WINEP, including those needed to meet WFD Regulations objectives such as preventing deterioration in status and to deliver actions needed to meet or move towards good status or potential. This does not replace water companies’ obligations to meet their legal responsibilities with regards to all existing permits.

The Environment Agency has overall responsibility for safeguarding the environment during drought including overseeing the actions water companies take to secure public water supplies. Plans for each of the Environment Agency’s 16 operational areas set out the actions that will be taken at different stages throughout a drought and give details on the arrangements for reporting and communications. Water companies are also required to produce Drought Plans under the Water Industry Act 1991. These set out the measures that would be taken to minimise environmental impacts and maximise available supplies during a drought.

The National Framework for Water Resources explores the long-term needs of sectors that depend on a secure supply of water including the water needs of the environment. It sets the strategic direction for long term regional water resources planning. The framework looks to ease the pressure on future water supplies by reducing demand, halving leakage rates, developing new supplies, moving water to where it’s needed and reducing the need for drought measures that can harm the environment.

Five regional groups across the country will work up plans tailored to the specific needs of their individual area, bringing together the 17 English water companies, industry regulators, government and other water users. The framework will guide these groups and deliver a national blueprint for future water resources planning from 2025 to 2050 and beyond.

These regional plans, due by September 2023, will inform water company Water Resources Management Plans and will plan to achieve a level of drought resilience so that emergency drought order restrictions, such as providing water only at certain times of the day (rota cuts) or through temporary taps (standpipes) in the streets, are expected to be implemented no more often than once in 500 years on average.

View further information on drought planning.

5.2 Protecting waters

A variety of mechanisms can be used to protect water resources that are used for abstraction. The Environment Agency’s Groundwater Protection: Principles and Practice provides guidance on activities involving abstraction of groundwater such as:

  • working with developers and local government through the planning system to ensure groundwater and the aquifer are protected
  • ensuring acceptable hydrogeological risk assessment are completed for schemes hazardous to groundwater resources
  • using voluntary agreements or more formal Water Resources Management Arrangements to control abstraction
  • using economic incentives such as water pricing to influence how and when water is used
  • initiation of demand management and water-saving campaigns to manage and reduce demand effectively
  • action to improve river habitat and morphology to complement and enhance actions to maintain or improve river flows and water levels