The water regulator has cleared Thames Water to invest £400m in upgrading two London water treatment works to secure drinking water supplies.
The deal with Ofwat allows it to take forward several schemes at Coppermills and Hampton water treatment works.
Works will involve replacing ageing infrastructure and building new treatment capabilities.
The full programme of work is due to finish by January 2032.
Esther Sharples, chief operating officer at Thames Water, said: “It’s critical that we build resilience and invest in major infrastructure, so that we can meet the challenges ahead.
“As the population of London increases and we experience hotter and drier summers, we continue to see the demand for water grow.
“Investing in the condition of our assets is core to our continued turnaround and our planned upgrades will mean improved water security for millions of Londoners.”
Thames Water will provide regular updates to Ofwat on its progress in delivering its key project milestones.
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