This paper contains the draft Water Bill itself and explains the context and rationale for its measures. The draft Water Bill will deliver legislative commitments set out in the Water White Paper (Cm. 8230, ISBN 9780101823029). It will, implement a package of retail and upstream market reforms; allow complementary changes to Ofwat's regulatory regime; allow the scope of the environmental permitting regulations to be extended from prevention of pollution to include the abstraction and impounding of water, flood defence consenting and fish pass approvals; and make minor changes to existing legislation to reduce and simplify regulatory and administrative burdens. The reforms will mainly apply to England and Wales but will also allow for a joint water and sewerage retail market with Scotland