Integrated governance approaches for effective U.K. water management
This article outlines the foundational ingredients for effective integrated water governance, examines the current obstacles to reform, and presents three potential governance models that should be explored once the Cunliffe Review delivers its full findings.
With the publication of the interim findings of the Cunliffe Review now available and the final report expected later this summer (2025), the U.K. water sector is poised for its most far-reaching reform since privatisation nearly 40 years ago. Commissioned by Environment Secretary Steve Reed and led by Sir Jon Cunliffe, the review tackles the major challenges currently facing the sector from environmental degradation to ageing infrastructure and growing public dissatisfaction.
The review is timely. The existing regulatory framework is fragmented and outdated, resulting in inefficiencies and mounting environmental and economic risks. Extreme weather is placing unprecedented strain on water systems, while rising demand intensifies pressure on already stretched resources. Meanwhile, mounting scrutiny from the public and regulators has highlighted the need for greater transparency, accountability, and long-term investment.
The objectives of the Cunliffe Review are ambitious. It seeks to raise water quality standards, bolster environmental sustainability, and improve financial resilience across the industry. Its findings are likely to provide a strong evidence base for potential reforms. However, decisions on whether and how to implement such changes ultimately rest with the government.
Water stakeholders are well aware of the challenges ahead. What they now need is not just fresh motivation, but a clear, credible pathway to reform the sector to be more sustainable and resilient as it faces the complex challenges of the 21st century. Translating these high-level ambitions into practical, lasting change requires not only vision, but also deep technical insight and proven delivery experience.
At ICF, we have extensive experience in developing integrated governance approaches in water management for regulators, NGOs, and private actors to identify and build collaborative systems that are both resilient and sustainable.
The opportunity for change now is real, and all stakeholders in the water sector must seize it by focusing on key success factors and evidence-based models.
Ingredients for effective governance of water management
If reform is to be effective, it must be built on a clear understanding of what makes governance successful. Our insights are informed by work undertaken across multiple projects with the U.K.’s Department for Environment, Food & Rural Affairs (Defra) and its arm’s length bodies (executive agencies, non-departmental public bodies, non-ministerial departments) that have identified the key barriers and challenges to water governance reform. These insights are also informed by international case studies that point to the core ingredients of water governance.
The evidence shows that the likelihood of success is increased where there is:
- A shared vision and collaborative frameworks
Integrated governance models that address the full spectrum of sustainability challenges can deliver wide-ranging benefits and resilience over time. Collaboration among stakeholders, with a strong emphasis on local participation and bottom-up approaches, is key. Governance should be holistic, integrating long-term planning with decision-making processes that align social, environmental, and economic priorities. Cohesive decision-making structures, where all actors work together toward common objectives, help ensure that policies are both inclusive and sustainable. Initiatives are most successful when supported by clear and consistent formal regulatory frameworks. Policies must be clear and comprehensive, with empowered regulators and simplified rules that drive compliance and accountability.
- An appropriate scale of intervention and funding structure
Effective water governance requires interventions that are set at the appropriate scale, particularly catchment-level planning that aligns local, regional, and national priorities through nested, integrated approaches. Adequate and sustainable funding to support these interventions is essential. Blended models that combine public and private investment offer the best prospects for long-term viability. Realistic, long-term goals and secure funding mechanisms that support ongoing progress triumph over short-term fixes. Sustainable and long-term funding not only ensure continuity, but also build trust among stakeholders, enabling more effective planning and implementation. Governance systems need to be flexible and adaptive, and capable of responding to changing conditions and emerging challenges over time. Aligning scale, strategy, and financial resources helps establish resilience and a coordinated governance framework that can meet complex water management needs.
- Evidence-based decision-making
Data-driven approaches to decision-making enable responsive and evidence-based planning, while transparency helps foster stakeholder collaboration and public confidence. Effective governance also relies on robust data and monitoring systems to support informed decision-making. Open access to reliable data builds trust among stakeholders and ensures accountability in governance processes. Adaptive, learning-based frameworks that incorporate new evidence allow systems to remain responsive to emerging challenges. By continuously integrating updated data and insights, governance can evolve in real time, improving outcomes and supporting long-term sustainability.
Challenges and barriers to water reform
Reform is hard. The problems are often known but addressing them can be hampered by both structural and operational obstacles within the existing regulatory framework for the U.K.’s water sector. These barriers include:
- Fragmented regulatory frameworks
Water governance in the U.K. suffers from a patchwork of policies, regulations, and responsibilities spread across multiple departments and agencies. These fragmented structures result in duplicated efforts, conflicting mandates, and ineffective outcomes.
- Imbalanced stakeholder representation
Not all voices are heard equally. Our work has shown that some stakeholder groups exert disproportionate influence, while others (for example local communities and local environmental interest groups) struggle to have their perspectives heard and integrated into decision-making. This imbalance hinders the development of equitable, long-term solutions.
- Funding constraints and short-termism
Water governance is often constrained by short-term funding cycles, with little opportunity for longer-term private investment. This inhibits the planning and implementation of longer-term sustainable projects and limits the sector’s ability to innovate.
- Lack of transparent, up-to-date data
Open, integrated data ecosystems are critical yet many decisions are being made without access to robust, real-time data. Outdated systems, a lack of transparency, and poor interoperability undermine trust and accountability.
Three integrated governance models to explore, post-Cunliffe
Once the Cunliffe Review has concluded, water stakeholders in the U.K. will need to move quickly to design and implement reforms. There are three models that offer distinct but complementary ways forward. These are:
- The Integrated and Cross-Sectoral Governance Model
This model focuses on the coordinated development and management of water, land, energy, and food systems to maximise economic and social welfare, without compromising environmental sustainability. Recognising the interdependence of these sectors—water, energy, and food security—it promotes integrated decision-making across them.
- The Decentralised and Adaptive Governance Model
In this model, decentralisation is paired with strong coordination mechanisms. It links and leverages local expertise to share knowledge and build social capital while building capacity for flexibility, learning, and resilience. The aim is to enable governance systems that can respond to complexity and change through collaboration and continuous adaptation. The focus is on developing capacity to create new systems that emphasise flexibility, learning, and resilience in governance.
- The Transparent and Accountable Governance Model
This model focuses on creating a robust regulatory and operational framework that promotes transparency, accountability, and efficiency in decision-making. It supports trust-building among stakeholders and strengthens institutional performance across the water sector.
These frameworks enable governance systems to be both locally responsive and nationally coherent, and they also foster trust by ensuring that decision-making is inclusive, flexible, and evidence based.
An opportunity for change in water governance reform
The Cunliffe Review and the upcoming expiry of the Water Framework Directive in 2027 represent a rare window for change. Modernising water governance will require working in partnership with experienced, innovative delivery partners. ICF has the trust of stakeholders across the sector, and we are ready to help lead this transformation, by helping design and implement the water governance models of the future—ones that are fit for purpose, resilience, and capable of delivering the water sector the U.K. needs.
Reform will be challenging, but now is the time for action. With the right vision, the right models, and the right support, integrated water governance can deliver better outcomes for communities, ecosystems, and the economy.