In 2026, regulators around the world are preparing to address water leaks head-on, with potentially serious consequences for providers whose ageing networks fail to comply with the new targets set for them. AI-enabled technology could be the best chance for water management teams to rise to the challenge
In January 2026, UK Secretary of State for Environment, Food and Rural Affairs Emma Reynolds met with residents in Sussex and Kent following a serious outage that left many without water to their homes for up to a week.
Reynolds has called on regulator Ofwat to review the operating licence of the utilities supplier involved, where executives are blaming the outages on bad weather that led to leaks in its ageing pipe system. If Ofwat decides that the company has breached the terms of its licence, the regulator has the power to revoke that licence entirely, or to impose a financial penalty amounting to 10% of annual turnover.
Elsewhere , other regulators are preparing to flex their muscles in 2026. Across the EU, for example, the new Drinking Water Directive (DWD) legally mandates the reduction of water leakage, by requiring member states to assess, report and create action plans for high leakage rates. This information will be used by the EU to establish mandatory thresholds by 2028, compelling utilities to act.
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The movement to plug leaks that may account for the loss of as much as 30% of treated water globally is rapidly gaining momentum. But spotting leaks and identifying their exact location has never been an easy task.
After all, water pipes are buried, often deep underground. It can be a hit-and-miss affair for teams wielding shovels and backhoes to figure out which pipes in often massive networks are leaking, let alone where and why. Multiple leaks affecting a single area of pipeline can compound the challenge, with the result that the most damaging losses don’t always get tackled first.
At Oldcastle Infrastructure, part of global building materials supplier CRH, executives claim that the company’s CivilSense technology is the only solution to enable providers to effectively tackle this inefficiency and waste. To do so, it takes a four-step approach.
First, CivilSense begins by analysing a wide range of data sources to identify pipeline sections most at risk of failure. That data includes information on pipe type, install data, topography, weather, soil conditions and a utility’s own hydraulic model and pressure zones. Predictive risk modelling is used to flag areas with the highest potential for leaks or breaks, as well as indicate their probable cost and impact if left unfixed.
Second, acoustic sensors are temporarily deployed at various points in the network to detect in real time the unique sound signatures associated with leaks.
Third, CivilSense processes this acoustic data using advanced AI to detect leaks and pinpoint their exact location, size and severity. This precision enables providers to prioritise repairs and proactively plan future maintenance work.
As recent events in Sussex and Kent have demonstrated, a more sustainable, cost-effective approach is urgently needed – one that shifts water suppliers from a posture of reactive repairs to one of proactive prevention
Finally, Oldcastle Infrastructure’s experienced team of field engineers validate the AI findings onsite, ensuring real-world accuracy and precise data interpretation. Once confirmed, the same sensors continue to monitor the zone post-repair to verify success and detect any smaller leaks that might have been hidden by the acoustic signatures of larger and now-repaired leaks.
It’s an effective approach, offering an industry-leading leak detection accuracy of 93%, according to the company. At utilities companies and municipalities that rely on CivilSense, water management teams are able to improve operational efficiency, boost service delivery and manage their assets better, as well as focus the talents of their engineers on higher-impact work.
The technology might also help attract the next generation of younger, more digitally savvy engineers to the water management sector, as well as help utilities companies and municipalities rise to the challenges posed by increased demand from consumers and the impact of adverse weather events.
As recent events in Sussex and Kent have demonstrated, a more sustainable, cost-effective approach is urgently needed – one that shifts water suppliers from a posture of reactive repairs to one of proactive prevention. That would be good news for their own internal efficiency and for the communities they serve and may also help to keep sharp-eyed regulators from their door.
