South West Water opens £2m Nature Recovery Fund to boost community-led environmental projects

A new £2 million Nature Recovery Fund, launched by South West Water to help communities restore wildlife habitats and improve water quality, is now open for applications across the region. The fund will support grassroots groups in Cornwall, Devon, the Isles of Scilly and parts of Dorset, offering investment for projects designed and led by local people.

The initiative forms part of a wider £24 million package of enforcement measures approved by Ofwat earlier this year, creating an opportunity to invest directly in nature, water and communities across the South West. It is one of the largest community-focused environmental funding commitments ever made by the company.

The scheme builds on a long history of public concern over river health, storm overflows and environmental pressures in the region - challenges shaped by ageing infrastructure, intense seasonal tourism and the South West’s globally important coastline. South West Water has previously supported programmes such as Upstream Thinking and wetland creation projects, but the new fund places more decision-making power directly in the hands of community groups.

More than 200 residents, volunteers and environmental organisations have already helped shape the fund through workshops and stakeholder forums, including the Let’s Talk Water session held on 22 September and a series of online briefing events. Their input has influenced the fund’s priorities, language and delivery approach.

Susan Davy, CEO of Pennon, said:
“I’m really pleased to see the Nature Recovery Fund help turn ideas into action that will help us to support community-led projects that enhance both nature and water quality. Across the South West, my teams and I have met so many passionate people with a deep connection to the places they live, and this fund is about backing them to make a real difference.

“More than 200 people have already joined our briefings to share their ideas and I’m excited to see those projects come to life. By working hand in hand with local communities, we can protect and restore our rivers, landscapes and wildlife, creating lasting improvements to water quality, biodiversity, and local pride. This is another step forward in caring for the environment we all love, ensuring that our recovery is shared by nature, by people, and by place.”

The Nature Recovery Fund offers two grant levels designed to support a wide range of project sizes and ambitions:

• Small Grants – up to £10,000

• Large Grants – up to £250,000

Applicants will first submit an Expression of Interest (EOI). Those whose proposals align closely with the fund’s aims will then be invited to submit a full application. South West Water advises applicants to choose the grant stream that best matches the scale, scope and expected outcomes of their project.

The Nature Recovery Fund is focused on projects delivering clear, measurable improvements for biodiversity and water quality across the region. Priority areas include:

1. Measurable biodiversity and water quality improvements

Projects that restore, create or enhance natural habitats will be prioritised. This may include pond creation, tree planting, habitat restoration and other catchment-based schemes that strengthen ecosystems and improve water environments.

2. Natural flow management

The fund will support initiatives that help manage water sustainably within catchments, including rainwater harvesting and shared rainwater storage for nature sites, community allotments and green spaces. These schemes can reduce pressure on sewer networks and watercourses during heavy rainfall, helping limit storm overflow events.

3. Strengthening local environmental organisations

Grants will also help build the capacity of community groups, supporting catchment management planning, volunteer coordination, and training programmes focused on biodiversity, water quality and nature-based solutions. The aim is to ensure long-term environmental stewardship led by local people.

The fund is expected to expand volunteer biodiversity programmes, support rainwater management projects, and enable new community-led nature schemes. It sits alongside wider regional efforts to create nature recovery corridors and strengthen resilience to climate change - issues of growing urgency in the South West, where communities are already experiencing rising rainfall extremes, coastal erosion and increased water demand.

Applications are now open to community groups, charities and environmental partnerships seeking support for projects that deliver lasting improvements to nature and water quality across the region.