The Water Innovation Fund has launched the seventh Water Breakthrough Challenge, which will award up to £50 million to collaborative innovations that tackle the water sector’s biggest issues.
The water sector continues to face increasingly pressing challenges on all fronts. These include adapting to the impacts of climate change, with droughts being an urgent problem this summer; ending the overuse of storm overflows and solving the emerging challenges caused by forever chemicals; identifying and eliminating leaks and helping people to use water efficiently; and improving the health of our rivers, streams and coasts for the benefit of communities and nature.
Water Breakthrough Challenge 7 is calling for new thinking and diverse solutions. Entries can be broad in scope and could include anything from ideas for how we can clean up our riverways and achieve a net zero water sector, to projects that protect natural ecosystems, prevent leaks and pollution, and cut costs for customers.
Dr. Jo Jolly, Ofwat’s Director for Natural Assets, Environment and Innovation, said:
"The record-breaking heat and widespread droughts of summer 2026 are not anomalies. They are a warning of the future arriving faster and harder than expected.
"Since 2020, the Water Innovation Fund has invested £251 million in 156 projects. Those projects are already delivering impact, but the scale of the challenge demands far more. Climate change and pollution are not only threatening our rivers, wildlife and natural environment, they are threatening our health, our economic prosperity, and our national security.
"No single organization can solve these challenges alone. The breakthroughs we need will come from radical collaboration across sectors, bringing together expertise, technology, investment and the power of nature itself. From restoring rivers and tackling forever chemicals to mindset shifts such as nature as critical infrastructure, we are looking for innovators prepared to push boundaries and challenge convention.
"That is what our Breakthrough Challenges are all about: finding the ideas bold enough to meet the moment and turning them into solutions that repair our environment, strengthen our economy, and help communities thrive."
Up to £50 million will be awarded through two streams – the winners of which will be announced in May 2027:
- The Catalyst stream will award partnerships seeking between £150,000 and £2 million. It will close for entries on 5 January 2027].
- The Transform stream will award partnerships seeking between £2 million and £10 million. First stage entries close on 28 September, with the most promising entries then invited to enter Stage 2 on 16 November].
Across the six Water Breakthrough challenges to date, almost 100 innovations have been funded – many of which focus on improving river health. These include sponge-like “water batteries” that store excess water on farmland, which can be released into rivers during droughts; and an open data platform that shares live insights into river health, which has led to the development of the live sewage overflow map for England and Wales – a world first.
Lucia Grimm, Westcountry Rivers Trust (partner of the Water Net Gain project, one of the winners of Water Breakthrough Challenge 3), said:
“Rivers are our lifeblood, sustaining the drinking water we all rely on. We need bolder, more innovative ways to improve their health, and that's exactly what the Water Net Gain project offers. Winning Water Breakthrough Challenge 3 has enabled the project to explore new ways to hold water in ponds when it's plentiful and release it to rivers or farmland when it's scarce, easing pressure on public supply and boosting river flows. By working with both the water industry and farmers, we can achieve a bigger, better impact and build future-ready rivers.”
Melissa Tallack, Independent Co-Lead, Stream (one of the winners of Water Breakthrough Challenge 3), said:
“Being granted funding through the Water Breakthrough Challenge has led to a cascade of change. By making water data open and accessible, we’ve armed citizens, researchers, academics, innovators, eNGOs, regulators and companies with the data needed to drive positive change and further innovation. This includes the world-first publication of near-real-time event data for every sewage overflow in England. This data is now extensively used to inform improvements to safeguard our water environment and all who interact with it. It is just one of many examples demonstrating how innovation funding for Stream has unlocked the potential for further innovation in the sector and enabled us to help other projects with their data challenges.”
Other winners include projects to tackle chalk stream degradation, citizen science initiatives to help communities play a role in the health of their rivers, fungi filled bags that absorb and destroy chemicals in rivers, and AI that listens to the life in a river - identifying when it is under threat.
The seventh Water Breakthrough Challenge is delivered by innovation prize experts Challenge Works (part of Nesta), in partnership with Arup and Isle, and funded by Ofwat’s Water Innovation Fund. Entries must be led by a licensed water company in England or Wales (including small water and sewerage companies, and Thames Tideway).
The Water Innovation Fund is a key pillar in Ofwat’s mission to drive innovation that ensures that the sector is meeting these challenges head on. Since 2020, the Fund has awarded £251 million to 156 projects involving 354 partners, with 65% of funding going to universities, charities, technology companies, engineering firms and wider business.
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