A shortfall exceeding five billion liters per day in public water supplies by 2055 is projected for England and Wales, driven in part by population growth, climate change and increasing demand. To prevent this shortage, a challenge-led competition has been implemented by the Ofwat Water Services Regulation Authority to develop and scale innovations that cut water use in the region.

Users — whether residential or commercial — need to reduce their usage but currently lack the detailed data and insights needed to understand their consumption, identify waste and take effective action. The Water Efficiency Lab competition has been engineered to overcome this and turn data into positive insights and action. The inaugural event is offering £5 million ($6.5 million U.S.) in total funding and up to £1.5 million ($1.9 million U.S.) for individual projects.

Source: Ofwat

The first year of the competition will focus on closing this knowledge gap, providing water customers with practical insights that provide more detailed information on their usage that can lead to behavior change. A range of solutions is sought to receive funding, including customer-facing smart data platforms that provide real-time behavioral prompts and incentives; fixture-level monitoring systems that track the usage of specific appliances; and combined leak detection and consumption systems that provide behavioral feedback. Entries that provide alternative approaches for properties which are unable to have a water meter fitted, are hard to meter and properties that are a low priority to be metered will also be considered.

The Water Efficiency Lab is open to all U.K.-based innovators and international innovators that partner with a U.K.-based lead entrant. Participants from water companies, tech developers, universities and start-ups are encouraged to enter by March 10, 2026. Winners will be announced in June 2026, with funding awarded to the most promising projects.