Part 5: Water Section 78: Water resources management plans, drought plans and joint proposals New section 39E Joint proposals
Subsection (1) introduces a new power for the Secretary of State or Welsh Ministers to direct water undertakers to prepare and publish joint proposals.
	Subsection (2) provides that a joint proposal is a proposal identifying measures that may be taken jointly by the undertakers for the purpose of improving the management and development of water resources. Such proposals are currently being developed on a voluntary basis by water undertakers working together in regional groups. Such directions can require those joint proposals to include measures to support the achievement of relevant environmental objectives.
	Subsection (3) clarifies that a water undertaker must not prepare a joint proposal that includes measures that prevent water undertakers meeting their obligations under Part 3 of the Water Industry Act 1991. Part 3 includes, in particular, water undertakers’ water supply duties.
	Subsection (4) provides that the Minister may specify the form that the joint proposals must take, any specified matter they must address, a particular area they should cover, any specific criteria they should address, and any planning assumptions they must be based upon. The directions are likely to require matters that change over time and location are addressed, for example, population, climate change or drought projections.
	Subsection (5) provides that any directions must be set out in writing. This is consistent with the approach to other powers in the Water Industry Act 1991 under which the relevant Minister may direct water undertakers as to certain matters.
	Subsection (6) provides that each undertaker to whom a direction applies must comply with the direction.
	Subsection (7) provides that a direction under this subsection would be enforceable by the Minister under Section 18 of the Water Industry Act 1991. This is consistent with the current approach to water resources management plan and drought plan directions.
	Subsection (8) provides that the power to make directions under new section 39E is conferred on the Secretary of State for water undertakers whose areas are wholly or mainly in England and Welsh Ministers in relation to water undertakers whose areas are wholly or mainly in Wales.
	Subsection (9) provides that, where new section 39E refers to matters "specified", this means specified in a direction under that section.