OF
Water Services Regulation Authority (Ofwat)

Water Discovery Challenge 2

Funds early-stage water-sector innovations with staged seed funding for finalists and winners.

Ofwat's Water Innovation Fund runs this challenge, delivered on its behalf by Challenge Works (formerly Nesta Challenges) with support from Isle Utilities and Arup. Out of 314 entries submitted by the April 2026 deadline, 20 were selected as finalists after assessment, each receiving up to £100,000 in seed funding plus non-financial support and direct water-sector mentorship from July 2026. From t

Looking for bold, early-stage solutions to the most urgent challenges facing the water sector in England and Wales. Open to fresh thinking brought in from other fields such as energy, construction, agriculture, aerospace and Tech/AI, not just water specialists.

CycleiHow often this grant runs - e.g. annually, on a rolling basis, or a one-off call.No fixed schedule
Next deadlineiThe next date applications are due. Rolling means you can apply any time.-
Decision timeiTypical time from the deadline to the funder's decision.-
Project durationiHow long the funded work is expected to run.-
Award typeiThe form of funding - grant, equity, loan, tax credit, etc.Prize
Match fundingiThe share of project costs you must cover yourself. 0% = fully funded.-
Funding pooliThe total budget available across all awards in this round.£7.5M

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