This analysis describes the characteristics and scale of the water sector and impact on the delivery of nature conservation in England. It gives English Nature?s objectives for the sector and sets out our six priority actions for 2002-2005. It is intended to provide the strategic direction of what we want to achieve in the water sector. We outline the roles and responsibilities of the key shapers and players within the sector. The dominant influences in this sector are the Department for Food and Rural Affairs (DEFRA), the Environment Agency (EA), the agricultural sector and Ofwat.

We examine the key socio-economic and political factors that shape the sector. In particular, the failure to recognise the value that properly functioning water ecosystems bring to meeting our socio-economic demands on water. We identify the obstacles presented by the numerous and varied institutions, legislation, regulations and incentives that have been established to manage water. We analyse the positive and negative impacts of the sector on nature conservation, and assess the regional variation in these impacts.

From this analysis are derived our priority objectives for the sector. These are to:

	address and ameliorate diffuse and point source water pollution at a site-specific and catchment scale;
	restore water levels and flows at a site-specific and catchment scale;
	maintain and restore aquatic species at a site-specific and catchment scale;
	promote changes in land-use at a catchment scale in a way that promotes sustainable water management;
	promote the widespread restoration and creation of wetlands on a catchment scale.

Six priority policy actions arise from this:

	seek to ameliorate the impacts of diffuse agricultural pollution at a site and catchment scale;
	secure implementation of the AMP3 investment programme and the necessary nature conservation schemes for inclusion in the AMP4 programme;
	support the Water Bill and seek its effective implementation and support the implementation of sustainable water resource polices by the Environment Agency;
	seek implementation and effective funding for WLMPs on priority SSSIs and the development of a flood management policy that works more with nature and delivers biodiversity gain;
	seek effective implementation of the EU Water Framework Directive for nature conservation gain;
	develop and communicate English Nature?s long-term vision for water and wetlands and implement partnership projects to demonstrate the benefits of wetland