The key question is whether a local planning authority (LPA) can refuse to grant planning permission due to a lack of wastewater capacity. A point that has been considered as part of a number of planning appeals, with differing outcomes:

• ‘Yes they can’ – Wealden Council was an early LPA to refuse planning permission due to the lack of foul drainage capacity, with an Inspector subsequently agreeing, citing the potential for increased pollution in the water environment (1) contrary to paragraph 198 of the National Planning Policy Framework 2024 (NPPF 2024).
• ‘No they can not’ – the Inspector for a South Tyneside appeal concluded that paragraph 201 of the NPPF 2024 does not support resisting new housebuilding due to a lack of foul drainage system capacity. On the contrary, the NPPF 2024 required LPAs to assume that the pollution control regime is operating efficiently (2).
  

It should be noted that the Planning Practice Guidance is clear in its advice that water quality can be a significant planning concern where it may be affected by a lack of adequate wastewater infrastructure.

Moreover, the recently published NPPF 2026 states (Policy DM7) that matters which are controlled by separate regulatory regimes, such as wastewater, may be a material consideration where they have land-use implications. However, decision-makers should assume, unless there is clear evidence to the contrary, that those separate regimes will operate effectively.

Whether a planning permission can be refused on this point or not, the reality is that many water companies are facing capacity issues. Some are citing a lack of forewarning about the revised standard method figure for local housing need, which identified higher housing need numbers than those accounted for in water companies’ Water Resource Management Plans.

To try and resolve the issue the Ministry of Housing and Local Government and Defra have set up a Water Delivery Task Force and published ‘A new vision for water: white paper’ (3). The White Paper sets out government's long-term vision for reforming the water sector, stating that reform is required to improve the effectiveness of the current system.

The key takeaway is that the government now recognises that water infrastructure and planning need to operate together and that wastewater infrastructure should support growth, as opposed to being an obstacle. It is yet to be seen how successful this will be.

Further information

Contact Andrea Caplan

(1) Appeal Ref: APP/C1435/W/24/3343709 Land at Old Orchard House, Horebeech Lane, Horam

(2) Appeal Ref: APP/A4520/W/25/3367464 Land and buildings at Cleadon Lane Industrial Estate, Cleadon Lane, East Boldon

(3) A new vision for water: white paper DEFRA 20 Jan 2026