This guest blog is written by Dr Elizabeth Lawson as part of the SPICe Academic Fellowship Scheme. The scheme enables academics to work on projects with the Parliament in support of parliamentary scrutiny.
This blog is the third in a four-part series exploring reform of water, wastewater and drainage policy and legislation in Scotland. This blog explores issues affecting private water supplies and private sewerage system users in rural and island communities. This blog series accompanies a SPICe briefing ‘Scotland’s water industry: overview of regulation and key challenges’.
As with all guest blogs, what follows are the views of the authors and not those of SPICe, or of the Scottish Parliament.
Introduction
The first blogs in this series set out challenges facing Scotland’s water sector and why there is a need for reform of current legislation. This blog digs deeper into the challenges of delivering water and wastewater services across rural and island communities in Scotland. It questions whether a new approach to rural provision, could help address barriers to a more resilient water and wastewater (sewerage) service for all of Scotland.
Water and wastewater services in rural and island communities
While most of Scotland is served by Scottish Water, around 3.5% of the population (over 190,000 people) rely on private water supplies for their drinking water.
The Drinking Water Quality Regulator (DWQR) state that this is an underestimate of the population served, as it does not include the large numbers of people e.g. tourists, who interact with commercial premises that are supplied by private water supplies.
Private wastewater (sewage) treatment systems are even harder to track. Septic tanks and other small private sewerage systems must be registered and authorised with SEPA. However, many are not authorised because they were installed before the licensing regime was introduced in 2006. Accurate data is reliant on voluntary registration by owners and due diligence during house sales. SEPA estimates suggest there are around 169,000 private systems in existence.
These private systems are common in rural and island areas. This is because historically, public systems were prioritised in towns and cities where population density justified the investment, while rural regions lacked equivalent governance structures and financial resources to support such development.
Today’s system reflects these past choices and most properties in rural and island regions fall outside the current remit of Scottish Water’s duties and services.
Private water and sewage treatment system users face unique challenges
Climate change is increasing the risk of droughts and heavy rainfall, which can lead to both water scarcity and flooding. Rural households relying on small-scale water sources are particularly vulnerable. Land use changes may also reduce water availability.
During droughts, local authorities can request Scottish Water to provide bottled water under the Emergency Bottled Water Scheme. In 2018, this cost the Scottish Government £500,000. Information provided to SPICe by Scottish Water states that the average cost of providing emergency bottled water to private water supply users is £245 per pallet (plus delivery which varies by location) for 960 litres of water. A 2019 ClimateXChange report recommends improving assistance for transferring from private to public infrastructure, to support a reduction in future pressure on public resources.
Water quality and public health
Safe drinking water should be free from contaminants like E. coli, which can cause serious illness. Private supplies often fall short of public standards. In 2023, nearly 18% of domestic (Type B) private supplies failed E. coli compliance. Water scarcity can worsen quality by reducing dilution and increasing sediment suspension.
Issues with the quality and quantity of water available can negatively impact the health of humans and the environment, as well as having consequences in other areas of rural and island life.
Poor quality drinking water can result in serious illness and require the use of healthcare services and extended periods of time off work. For example, results from a study in Ireland that looked into the impacts of E.coli on the health of older people, shows a correlation between rates of E.coli detected in drinking water, and visits to the emergency department and nights spent in hospital.
Sewage pollution
Homeowners must maintain septic tanks to deal with wastewater and sewage, and prevent pollution. Poorly managed tanks can release pathogens and chemicals into watercourses. Studies show septic tanks can be hotspots for pollutants and emerging contaminants such as pharmaceuticals. Pollution is strongly influenced by maintenance and user behaviour.
Scottish Water has a duty to empty a septic tank when requested to do so and offers de-sludging services, but costs range from £245 to £492, depending on location and access. There have been reports of challenges on islands like Mull, where staffing shortages at treatment works led to waste being transported off-island, adding £724 per trip with costs often passed to customers.
Some older properties still discharge untreated sewage directly into the environment. SEPA does not permit new discharges and seeks upgrades during house sales. Though localised, these discharges can affect coastal enjoyment. A Scottish Parliament petition raised concerns about the impact on bathing waters and the natural environment.
The petition was closed in recognition of SEPA’s view – supported by the Scottish Government – that the time spent handling queries and investigations into untreated discharges is disproportionate to the low risk of harm that the issue presents to the water environment. SEPA is only required to monitor coastal water quality at locations that are designated bathing water sites.
Private water and wastewater system users lack adequate support
Local authorities oversee private water supplies, but support for private system users is limited. Local authorities are required to carry out annual testing and conduct a risk assessment every five years on regulated private water supplies (supplies serving 50 or more people, or for commercial use).
For other private water supplies (typically single properties), owners are responsible for maintenance and testing. They can request water quality testing from local authorities but must pay for this service. The cost of testing is variable and based on individual local authority pricing. For example, Argyll and Bute Council charges range from £145 for a domestic sample to £266.05 for a compliance sample.
There is currently no single comprehensive source of information for private water supply users. Advice and information is split across local authorities, the Drinking Water Quality Regulator and the Scottish Government. Additionally there is no requirement to assess the risk of interruption to supply for unregulated private water supplies.
A recent project, Taps Aff!, highlighted these issues through a short film sharing user experiences.
Costs to connect to the Scottish Water public network can be prohibitive
Private system users don’t pay council tax charges for water services but face their own maintenance costs. Scottish Government funding, distributed through local authority grants of up to £800 are available for improvements, though not for ongoing costs or connection to public mains. Inflation has eroded the grant’s value, which would now be worth around £1,300 if it had increased in line with inflation (based on real terms 2024/25 prices).
Connecting to the public network is managed case-by-case and can cost between £2,000 and £100,000, excluding contractor fees. In many cases, this is not feasible or cost effective due to the distances of properties from the mains supply. No financial support is currently available to individual households for these connections. Wastewater connections follow a similar process, with feasibility depending on location and existing infrastructure capacity.
Should Scottish Water’s responsibilities extend beyond the current network?
As a publicly owned and operated corporation, Scottish Water is accountable to the Scottish Government, Scottish Parliament, and ultimately the Scottish people.
Scottish Water’s recent long-term Strategy outlines how the organisation aims to plan for, and adapt to a changing climate as well as how it will contribute to meeting its ‘Water Sector Vision’ which commits to “ensure that all of Scotland gets excellent quality drinking water that people can responsibly enjoy” (emphasis added).
However, the current legal and regulatory framework does not require Scottish Water to provide a service to all. Scottish Water has a duty to provide a supply drinking water, sewers and sustainable urban drainage systems required for domestic purposes, to those already connected to the public supply and where it can be provided at a reasonable cost. What is considered a reasonable cost is determined in accordance with additional regulations.
Opportunities for reform
Delivering water services to rural and island communities in Scotland is challenging, but there are viable solutions.
Decentralised water and wastewater systems
Connecting everyone in Scotland to the public water and wastewater network is impractical due to cost and geography. However, this does not mean that everyone in Scotland cannot receive a public service.
Our research highlights that decentralised systems are typically small-scale, locally sourced, and governed by multiple stakeholders. While they offer flexibility and lower carbon footprints, they require better support and clearer governance to succeed.
Adoption of public decentralised technologies in rural and island communities, and a move to more community managed and operated schemes could provide an alternative model.
One successful example is Papa Westray, Orkney, where the community council manages the island’s water supply. Metered usage ensures fair billing, and revenue supports maintenance. The scheme also enabled broadband delivery via fibre cables housed in the water network—a UK first.
Integrated land-use planning
A 2024 CREW report – ‘Understanding the relationship between water scarcity and land use in private water supply catchments – a review’ – shows that land use changes like tree planting and wind farms can negatively impact private water supplies. It recommends:
- Localised assessment strategies
- Integrated planning across sectors
- Catchment-scale monitoring of land use on private water supplies
- Legislative reform to align water policy with climate and environmental goals.
Rainwater harvesting
Rainwater harvesting (RWH) is widely used in Europe to reduce water demand and protect sewage systems from overload. Germany leads with 75,000 systems installed annually, driven by laws requiring rainwater retention and pricing based on impermeable surfaces. Households benefit from lower bills and financial support for installation.
Integration of wider rural and island policy
Rural and island Scotland covers 98% of the land and 17% of its population. These communities face persistent challenges including high living costs, poor housing access, and slow broadband.
A range of Scottish Government policies aim to address these issues including:
- The Rural Delivery Plan: Due to be published in the current parliament. Covers strategic objectives for rural development.
- The National Islands Plan: Required by the Islands (Scotland) Act 2018. Provides a framework for improving island outcomes.
- Islands Community Impact Assessments: Also required under the 2018 Act. Ensures that the Scottish Government and public bodies consider island impacts when developing policy and legislation.
- Housing to 2040 Strategy: Promotes quality, affordable homes and commits to take action to stem rural depopulation.
- Rural and Islands Housing Action Plan: Supports the goal of 110,000 affordable homes by 2032, with 10% in rural and island areas.
Despite these efforts, water and wastewater services are not yet recognised as critical infrastructure in these policies. For example, the Rural Delivery Plan includes energy and broadband, but omits water and wastewater systems.
Involve communities in solutions
A change in policy and legislation, alongside adequate resourcing of public water sector organisations, will be key to achieving successful outcomes. Crucially, the communities and individuals these policies aim to serve must be involved from the outset.
The recent consultation on Scotland’s Water, Wastewater and Drainage policy signals a national intent for change and presents an opportunity to address the challenges discussed in this blog.
Reviewing water policy offers a chance to explore solutions by engaging with rural and island communities, as well as local authorities, Scottish Water, Scottish Government, and other organisations such as Consumer Scotland and Scottish Rural Action. The upcoming Rural Delivery Plan and the second National Islands Plan provide opportunities to recognise water and wastewater infrastructure as critical components of rural and island Scotland.
The success of any new policy depends on public bodies being adequately supported and resourced to collaborate effectively. Scottish Water, as the national expert in water treatment, is best placed to offer context-specific advice on the operation of decentralised treatment systems.
However, its current statutory duties do not extend to providing technical advice to local authorities or users of private water supplies. Establishing a national advisory service, as previously recommended by Consumer Scotland, would support private supply users by offering Scotland-wide guidance and advocacy for treatment system operation.
Finally, access to financial support for communities and individuals is vital to ensure systems are operated effectively.
Without action, some rural and island areas risk becoming uninhabitable due to inadequate water services. It could be argued that there is currently a two-tiered system, and reform is needed.
Conclusion
Scottish law makers as well as public bodies such as Scottish Water should engage with rural and island voices on their lived realities, if the vision of fair and resilient water supplies for all of Scotland are to be achieved.
The final blog in this series examines whether a human right to water should be enacted in Scotland.
Dr Elizabeth Lawson, SPICe Academic Fellow, Newcastle University
Title image: Low water levels at Backwater reservoir, north west Angus, August 2025. Credit: Scottish Water