Part 13: General Schedule 4: Utility activities Part 1: Activities that are utility activities Water
Paragraph 3 sets out when activities associated with water are utility activities.
	Sub-paragraph (1) specifies that the provision or operation of fixed networks to provide a service to the public in connection with the production, transport or distribution of drinking water and the supply of drinking water to such networks are utility activities.
	Sub-paragraph (2) sets out further activities which, to the extent that they are carried out by a person that also carries out the activities referred to in sub-paragraph (1), are also utility activities. These are: any activity connected with a hydraulic engineering project, irrigation or land drainage, provided the condition in sub-paragraph (3) is met; and any activity connected with the disposal or treatment of sewage.
	Sub-paragraph (3) sets out the condition referred to in sub-paragraph (2), which is that a person carrying out the activity must reasonably expect that more than 20% of the total water made available under sub-paragraph (2) is to be supplied as drinking water to a network.
	Sub-paragraph (4) sets out situations where the supply of drinking water is not considered a utility activity, all of which must be met in order for the exemption to apply. These are: that the operator (i.e. the supplier of drinking water) is a private utility or public undertaking; the operator produces drinking water because it needs the drinking water to do something other than a specified activity; the drinking water supplied is only the excess from such production that the operator has not used itself; and the drinking water supplied represents not more than 30% of all the drinking water produced by the operator.
	Sub-paragraphs (5) and (6) provide that an appropriate authority may make regulations setting out how to calculate the amount referred to in paragraph 4(d) and set out a non-exhaustive list of provisions that may be included in those regulations.