Environment Minister Andrew Muir plans to request Northern Ireland Executive approval for the Northern Ireland Environment Agency to exit special regulatory arrangements with NI Water. The arrangements began when NI Water formed in 2007 due to underfunded wastewater infrastructure. A governance review determined the setup failed to function as intended, with NI Water focusing regulation efforts on drinking water ahead of wastewater.

NI Water records indicate more than 24,500 combined storm overflow discharges in one year. Minister Muir stated to the Northern Ireland Assembly that sewer overflows released into waterways affected water quality, including blue-green algae in Lough Neagh and shellfish areas in Belfast Lough. He noted that only 29 percent of surface waterbodies achieve good ecological status. Over 20 million tonnes of untreated wastewater enter waterways annually.

Infrastructure Minister Liz Kimmins advised the Assembly that she collaborates with Muir on the proposals, while accounting for budget limits and problem scale. NI Water falls under the Department of Infrastructure, which regulates it, while the Department for Agriculture, Environment and Rural Affairs handles waterways.

Proposed measures include penalties up to £50,000 for pollution offences, fixed penalty notices and sentence reviews for environmental crimes. Further steps cover increased NI Water monitoring, new discharge standards and special status for Belfast Lough under urban wastewater rules. Minister Muir expects to present a Fisheries and Water Environment Bill in May 2026 to update enforcement and introduce ecosystem management.

The fourth price control process lacks full funding, pausing the Living With Water project in Belfast. NI Water exceeded its budget, prompting an investigation. Northern Ireland provides NI Water over £300 million in annual subsidies as households pay no direct water charges. The Department of Infrastructure suggests housebuilders contribute to a wastewater infrastructure fund.