The Department for Environment, Food and Rural Affairs (DEFRA) announced on 8 October 2025 that an agreement has been reached to unlock 21,000 new home developments in the Sussex North Water Supply Zone (SNWSZ). This move formally ends the four-year pause on development that was caused by water neutrality restrictions due to concerns over the amount of water being taken from rivers and wetlands in the Arun Valley.
A further announcement on 31 October confirmed that Natural England will be withdrawing their position statement, thus ending the requirement for Water Neutrality Statements in planning. This decision, which NE communicated to local authorities, is the official trigger for the policy changes we are now seeing across the region.
The change is based on new evidence from Southern Water’s Hardham Basin Environmental Study (HBES). Natural England has confirmed that a new package of ecological measures and amendments to Southern Water’s abstraction licence (to be implemented by March 2026) will “decouple” new development from any potential impact on the Arun Valley.
As a result, NE has concluded that new development will not have a “likely significant effect” on the protected sites. With the Natural England position statement gone, local authorities are no longer required to demand water neutrality. The focus has now decisively shifted from achieving neutrality to proving stringent water efficiency.
Read more here