South West Water, the supplier responsible for delivering drinking water and wastewater services to millions across Cornwall, Devon, and the Isles of Scilly, now finds itself at the center of mounting scrutiny and legal action following a series of high-profile controversies. In the wake of a major parasite outbreak in Brixham and a regulatory crackdown over wastewater mismanagement, the company faces not only a court summons but also the prospect of being sidelined from one of Devon’s most ambitious new housing developments.
On September 6, 2025, the Drinking Water Inspectorate announced that South West Water had been issued a court summons after its investigation into a cryptosporidiosis outbreak in Brixham earlier in May 2024. The outbreak, which left more than 100 people suffering from sickness and diarrhoea, was traced to the town’s water supply. The Inspectorate’s chief, Marcus Rink, did not mince words about the gravity of the situation, stating, “The Brixham incident was serious with significant impact on the public and the wider community. Accordingly, I consider it appropriate to pass the matter to the court to consider the evidence in the public interest.”
The potential offences relate to section 70(1) of the Water Industry Act 1991, which governs the quality of water supplied to consumers. The case is scheduled to be heard on October 2, 2025, at Exeter Magistrates’ Court. South West Water, for its part, has maintained that it “co-operated fully with the Drinking Water Inspectorate from the outset of this incident to help in its investigations” and pledged to “reflect on this summons.” The company added, “We take this incident extremely seriously, and we will continue to engage fully in response to these legal proceedings. In the meantime, our focus remains on delivering clean, safe, drinking water to our two million customers across Cornwall, Devon, and the Isles of Scilly.”
This legal challenge comes at a particularly delicate time for South West Water, as doubts about its reliability and performance have spilled over into the region’s future planning. In East Devon, where a new town named Marlcombe is set to rise between Exeter Airport and Crealy Adventure Park, local officials are openly considering bypassing South West Water entirely in favor of an alternative water and sewerage provider.
Marlcombe, which will eventually comprise 8,000 homes, is being developed with a sharp eye on infrastructure delivery—a lesson learned from the earlier Cranbrook project, where some vital amenities lagged far behind the arrival of residents. Councillor Todd Olive, cabinet member for place, infrastructure and strategic planning, made the council’s position clear: “Speaking for the administration, we don’t trust South West Water to deliver the relevant infrastructure, and certainly not in time for the second new community.” He explained that the council’s efforts to create a ‘masterplan and a delivery vehicle’ are designed to ensure that infrastructure comes online when needed, rather than after the fact.
One of the council’s main concerns is sewage management. Cllr Olive warned, “We need a strategy that makes sure the second new community’s sewage will be dealt with and not be dumped on beaches.” The council is exploring the possibility of installing around 10 individual treatment plants for Marlcombe, with the option of assigning responsibility for their installation and maintenance to another firm—or even a council-established entity, tentatively called the Marlcombe Drainage Co. No final decision has been made, but the willingness to look beyond South West Water marks a significant shift in local governance.
South West Water, for its part, remains optimistic. Ian Lake, head of solution development & technical performance at the company, said, “We have been liaising with the East Devon District Council for a number of months and will continue to keep them updated throughout the development of the delivery plans for drinking water and wastewater infrastructure for the new community of Marlcombe. We are confident we can meet the necessary requirements for these services.”
However, confidence alone may not be enough to assuage local concerns. In July 2025, the water regulator Ofwat proposed a £24 million enforcement package against South West Water after finding that the company had failed to meet its legal obligations in managing its wastewater treatment works and network. Ofwat said, “These failures resulted in the company spilling wastewater to the environment when it should not have done.” This regulatory rebuke, coupled with the Brixham outbreak, has clearly shaken faith in the company’s ability to deliver on its promises.
The Marlcombe project, which aims to avoid the mistakes made in Cranbrook, is being shaped by a desire for early and reliable infrastructure delivery. The council is not seeking to become a housebuilder itself, but rather to act as a facilitator, striking agreements with landowners and developers to ensure that homes and supporting infrastructure come forward in tandem. The possibility of using compulsory purchase orders has been floated, though the council says it would prefer to reach mutual agreements.
Financially, the stakes are high. The council is aiming to secure tens of millions of pounds for infrastructure upgrades, including enhancements to the airport junction on the A30 and improved connectivity to the A3052. There is also hope that Marlcombe could attract major funding for passing loops on the west of England mainline, potentially doubling train service frequency from hourly to every 30 minutes. Such improvements would not only benefit Marlcombe but also the wider region.
Cllr Olive pointed to the example of Cranbrook, which managed to secure around £100 million in infrastructure investment, notably for its railway station. He noted, “There were some positives with Cranbrook, such as the first primary school being open by the time just 30 homes were occupied, but the decision to leave everything to the developer was a fundamental mistake. I think the way we are approaching Marlcombe will lead to a significantly better outcome, and sooner, with infrastructure delivered early in the programme relative to how it came forward in Cranbrook. We need to show the people of East Devon that this is going to be the outcome. It isn’t down to them to take our word for it, there were mistakes and so it is down to us to prove we can do it better this time around.”
The council plans to publish Marlcombe’s masterplan in October 2025 and hopes to launch its development corporation in early 2027. As the legal and regulatory challenges facing South West Water continue to unfold, the decisions made in Marlcombe could set a precedent for how local authorities across the UK approach water and wastewater service provision in the years to come.
With public confidence in South West Water under pressure and the future of major infrastructure projects in the balance, all eyes are now on both the courts and the council chambers of Devon to see how these intertwined stories will play out.
