As one of the world’s great business capitals, London’s success relies on infrastructure that’s resilient, reliable and secure. That includes a water supply capable of supporting the city’s ambitions: a pre-requisite for current and future growth.
But climate change, shifting weather patterns and an increasing population are putting London’s water security at risk. Rising demand for water, combined with more frequent and severe droughts, and the need to protect our rivers means that securing long-term water supply is becoming more challenging.
The risks are no longer theoretical — they’re already materialising.
Last summer became the hottest and driest on record. Much of the country faced severe water shortages, and the Environment Agency has designated the South East as “seriously water stressed.” Without decisive action, the region faces a shortfall of up to one billion litres of water every day by 2050.
A shortage of this scale would touch every part of daily life. It could mean water restrictions, school and business closures, impacts on wildlife and river habitats, reduced crop yield and higher food prices. In the most extreme droughts, London’s economy could lose up to £500 million per day.
Water security isn’t just an environmental necessity — it’s an economic one. Investors require confidence to deploy capital, and a reliable water supply is key to giving them the certainty they need to invest for the long-term.
Tackling London’s housing crisis by building homes for the Londoners who need them, and regenerating the city in the process, will only happen if developers and planners know the taps will continue to flow. The potential for London to realise growth in water‑intensive sectors like hospitality, healthcare, energy and technology, depends on resilient supply.
That’s why Thames Water is working with Government and policy makers to help deliver that resilience.
The Teddington Direct River Abstraction (TDRA) project is a key proposal designed to help London maintain reliable water supplies during periods of drought. Using a new pipeline to top up North London’s reservoirs with water from the River Thames, it would supply up to 75 million extra litres of water per day – enough for over 500,000 people. The project would help taps continue to flow, businesses and schools to remain open, and daily life to continue as usual.
Elsewhere, our proposed new reservoir, south west of Abingdon in Oxfordshire, is designed to deliver long-term water security across London and the South East.
White Horse Reservoir (previously known as SESRO) will store 150 billion litres of water, supplying 15 million customers across the region. It would deliver up to 271 megalitres per day to customers, including millions of businesses and their employees, customers and supply chain partners.
For businesses, this reservoir is an investment in operational certainty and long‑term competitiveness.
Beyond securing water, White Horse Reservoir represents one of the UK’s most significant long‑term skills and employment programmes.
Construction alone will create around 1,800 jobs across engineering, environmental science, logistics, tunnelling, construction, habitat management and more. This is a project where new careers can start and established careers can grow.
And the opportunities don’t end there.
As the project progresses through design, build, testing and commissioning, there will be roles for contractors, SMEs, innovators, and professional services firms across London and the South East.
We recently launched procurement for the project’s Main Works Contractor – the partner who will lead White Horse Reservoir into its next phase. At £5.7 billion, this tender represents a once‑in‑a‑generation investment in securing London’s place on the global stage. You can find out more about the project and read the tender notice here.
Both of these projects are in development and are designated Nationally Significant Infrastructure Projects. But they are not guaranteed, and we need the voice of business to be heard to make the case for these vital interventions.
Securing London’s water future is not just a matter of environmental stewardship — it is a foundation for the city’s continued prosperity. As pressures on our water resources intensify, now is the moment for London’s business community, planners and policymakers to lean in, understand the scale of the challenge and help to shape the solutions.
Join me at 12:30 on Tuesday 14 April for a virtual briefing event with BusinessLDN to hear more about challenges around water security and help shape the future of London’s water supply — contact John Kavanagh to register your interest.