Ofwat approves funding for London Water Recycling scheme

Ofwat has approved funding for the London Water Recycling (LWR) scheme, a major project to boost the capital’s water resilience. The regulator selected the Teddington Direct River Abstraction (DRA) as the preferred option, with £22.6 million allocated to move it forward through 2030. The scheme will treat used water and return it to rivers like the Thames, helping to secure future supplies amid growing climate and population pressures. The Beckton option remains under development as a backup, while the Mogden route has been dropped.
The London Water Recycling scheme is a key part of Thames Water’s £989 million whole‑life investment plan, aimed at tackling climate change impacts and population growth challenges. The overall project development costs include Teddington DRA and Beckton WRS, among others, with £31 million allocated for development during 2025–2030 and a planned construction phase cost allowance of £108 million.
This decision represents a major step forward in ensuring drought resilience and sustainable water supply in London. Ofwat’s approval gives the green light to progress the London Water Recycling scheme, especially prioritising the Teddington DRA sub‑option through to Gate Four. Beckton remains under consideration. Mogden has been sidelined, and allowed funding is set to support planning, design, and early phases of delivery through 2030.
Read more:
- Water magazine article.
- Ofwat report: Overview of Thames Water’s PR24 final determination (April 2025).
