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United Kingdom
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England and Wales water abstraction and impounding: legislative framework, licensing, policy and guidance, charging scheme, and reforms towards environmental permitting

Practice notes
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Sustainable management of water resources

Oversight of sustainable water resource management sits with government, the Environment Agency (EA), Natural Resources Wales (NRW) and water companies, working together to steward supplies. Many industries depend on abstracting water to make their products, and the twin pressures of droughts and floods can sharply limit what is available. The abstraction and impoundment licensing regime therefore manages resources by securing sufficient supply whilst protecting the environment.

Its importance grows in water‑stressed regions (for example where demographic pressures in South East England are acute), and is tied to time‑limited licences, with periodic review, enabling the regulator to react more effectively to climate change impacts.

This Practice Note summarises the core legislative and policy framework governing water abstraction and impounding in England and Wales. It also reviews proposals to reform the regime by incorporating it within the environmental permitting system. For further details on water abstraction and impounding licence applications, determinations and enforcement, see Practice Note: Water Abstraction and impounding licences—applications and determinations...

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Web page updated on 21/05/2026

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