A new funding package has been agreed to shore up the water supply for the Monmouthshire & Brecon Canal after months of uncertainty over its future.

The Welsh Government will provide up to £400,000 a year for the next five years to support a supply agreement between Glandŵr Cymru - the Canal & River Trust in Wales - and Dŵr Cymru Welsh Water. The Canal & River Trust will add up to £100,000 a year, with talks ongoing to secure further contributions from other partners.

The deal replaces a short-term arrangement announced in April, which had been due to expire in March 2026.

It comes after a difficult and worrying year for the canal. Earlier in 2025, Natural Resources Wales imposed new restrictions on its long-standing abstraction licence from the River Usk, blocking the canal from drawing water during periods of low river flow. Combined with an unusually dry start to the year, the changes left Glandŵr Cymru struggling to maintain levels along the 35-mile waterway.

Over the summer, the charity was forced to buy emergency water from Welsh Water, calling the move a “temporary fix” and warning that the canal urgently needed a long-term solution.

Government figures say the Mon & Brec Canal contributes more than £30 million to the Welsh economy and supports over 1,000 jobs.

Deputy First Minister with responsibility for Climate Change, Huw Irranca-Davies said: "The Monmouthshire and Brecon Canal is a treasured part of Wales' heritage and a vital economic asset for our communities, but climate change and increasingly variable weather patterns have intensified the difficulty of maintaining adequate water supplies.

"We will always look to protect Wales' cultural heritage whilst supporting jobs and tourism and we're committed to working with all partners to find sustainable solutions.

“This agreement builds on the £5m we have already committed to refurbish the Manorafon pumping station and creates the space to develop long-term resilience for this precious waterway whilst we continue our important discussions with our stakeholders.”

Ben Cottam, Regional Director for Wales and South West at Glandŵr Cymru added: "225 years after the first shipment of coal made its way up this canal to Brecon, the Monmouthshire and Brecon Canal remains as essential as ever to people in South Wales.

"As the charity maintaining this man-made historical waterway, we know only too well the impact of climate change and the difficulty recent uncertainty has presented to all those who love this canal. We are grateful therefore to Welsh Government and the Deputy First Minister in helping to bring much greater resilience to the canal and establish a network of partners to ensure that it remains at the heart of Welsh life."