South West Water launched a £2-million fund for environmental improvement projects across the South West last week for community-led initiatives working to support nature.

The water company will offer small grants of up to £10,000 for small-scale local initiatives and large grants of up to £250,000 for bigger projects. The application window is now open, and community groups have until January 31, 2026, to apply.

Funding will be granted to projects based in areas served by South West Water that working to achieve one or more of the fund’s priorities; improving biodiversity and water quality, managing water flow, and strengthening local environmental groups.

Susan Davy, chief executive of Pennon Group, the parent company of South West Water, said: “By working hand in hand with local communities, we can protect and restore our rivers, landscapes and wildlife, creating lasting improvements to water quality, biodiversity, and local pride. This is another step forward in caring for the environment we all love, ensuring that our recovery is shared by nature, by people, and by place.”

South West Water consulted with over 200 people through workshops and forums to create a fund that would reflect community concerns and wishes.

The money comes from the £24-million enforcement package agreed with Ofwat to fund measures to benefit the environment and customers. The water companny opted for this rather than pay a £19-million fine for breaking wastewater standards.

Anyone interested must first send an Expression of Interest outlining their idea and, if approved, they will be invited to submit a full application. Applicants should also select the grant type that best matches the scale, scope and expected outcomes of their proposed project.

Susan Davy, who announced she was retiring in July 2025, remains CEO of the Pennon Group and South West Water until her successor Keith Haslett is in post next year, 2026.