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AbstractThe protracted drought from 1988 to 1992 has focused attention upon the availability of water sources in England and Wales. The drought was most severe in the east and south‐east parts of England, which also coincides with the areas having (a) the least available water resources, (b) the greatest forecast increase in demand, and (c) the majority of low‐flow problems due to excessive authorized abstraction. Even with increasing attention being paid to demand management, there is a need to develop further water‐resource schemes. Once local options have been developed it is likely that inter‐basin transfers will be required.