The UK's largest water recycling system — built, commissioned, and ready to serve up to 8,000 residents at the Eddington development in Cambridge — has been locked off since 2021. The reason is not engineering failure or safety risk. It is a 35-year-old law that requires every drop of water supplied to a home to meet drinking-water standards, even water destined for toilet cisterns. Section 70 of the Water Industry Act 1991, combined with regulation 4 of the 2016 water quality regulations, makes it an offence for a water company to supply non-potable water for household use. The Drinking Water Inspectorate interprets this as a blanket prohibition on dual-supply systems. Cambridge Water designed the Eddington system to capture rainwater via swales, treat it in a lagoon, and pipe it back for non-drinking purposes — targeting 80 litres per person per day, down from the national average of 140. The DWI said no. The absurdity is structural. Belgium and Germany have operated reuse systems for over 20 years. Belgian mains consumption runs about 90 litres per person per day. The technology is proven, the engineering is done, the infrastructure is built and paid for. The only missing input is a statutory amendment. Lutz Johnen, chair of the UK Water Reuse Association, called the block an urgent problem: "We are running out of water, we are seeing that this summer, water companies are struggling." Meanwhile, the Environment Agency projects a water demand gap in England of 5 billion litres per day by 2055. Cambridge Water and neighbouring Anglian Water have imposed hosepipe bans this summer as reservoirs run low. Labour ministers have designated Greater Cambridgeshire a key growth area, channelling millions of pounds in investment. Housing minister Matthew Pennycook promised in October 2025 to work with experts to switch on the Eddington system by 2026. It remains off. In March 2026, the DWI itself published a framework recommending that the law be changed to allow dual-use water systems in homes. The regulator agreed that rainwater and grey water reuse for non-drinking applications was needed. A Defra spokesperson said the government is reviewing these recommendations and pointed to £104 billion in planned private investment for water infrastructure, including nine new reservoirs. The pattern here is familiar: a regulation designed for a simpler era — when all household water came from a single potable supply — becomes an active barrier to the infrastructure the country now needs. Every month the law goes unchanged, the Eddington system sits idle, the 25 litres per person per day it could save goes uncaptured, and the precedent it could set for new developments across England remains unset. The University of Cambridge has pointed to the forthcoming water bill as a possible legislative vehicle. This is not a story about whether water reuse is safe — the DWI's own report says it is, with proper governance. It is a story about regulatory inertia: a statute that nobody defends on the merits, that the regulator itself wants changed, that ministers have promised to fix, and that nonetheless persists while the driest region of the country rations drinking water.