The assessment and development of water resources are considered in relation to present demands and the developed and potential water resources of England and Wales. Normal seasonal changes in storage are compared with those of 1975–76 and conditions during this period compared with previous droughts. Problems that arose in the summer of 1976 are considered together with the measures taken by water authorities to overcome local shortages. The implications of the shortages are considered in relation to methods of determining and defining the reliability of supplies. Criteria for planning the future development of water resources are discussed in the light of conclusions drawn from the 1975–76 drought and in relation to general planning considerations. There is no basic shortage of water and the extent of restrictions which may have to be applied during drought events is largely determined by the price the consumer is prepared to pay for the safeguard of additional capacity and assured supply.

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