The Welsh Government has published a strategic priorities and objectives statement (SPS) to Ofwat, issued under section 2B of the Water Industry Act 1991. This statement sets out the Welsh Government’s strategic priorities for the transition to a new regulatory framework for water in Wales, building on the SPS of July 2022. It outlines a three-phase transition plan: (1) legislative change from 2026 to around 2028–29; (2) establishment of a new Welsh economic regulator for water from 2028 to the early 2030s and (3) full operation from the mid-2030s onwards. Across these phases, two transition periods will be in place to ensure uninterrupted regulatory oversight of Welsh water companies. The SPS expects Ofwat to maintain effective regulation throughout the transition, comply with the Welsh Language (Wales) Measure 2011 and collaborate with the Welsh Government, Natural Resources Wales, the Drinking Water Inspectorate and the Consumer Council for Water to facilitate the transition to a new regulator. It also highlights the importance of preparing for Price Review 2029, with Ofwat expected to ensure that it reflects Welsh priorities for affordability, resilience and environmental outcomes. The SPS also emphasises the need for strong governance and accountability, with Ofwat's decisions expected to align with Welsh Government policy positions on fairness, sustainability and public value.