It shall be the duty of F4Scottish Water to provide a supply of wholesome water to every part of F5its limits of supply where a supply of water is required for domestic purposes and can be provided at a reasonable cost.

Without prejudice to the generality of subsection (1), F6Scottish Water shall provide a supply of wholesome water in pipes to every part of F7its limits of supply where a supply of water is required for domestic purposes and shall take the pipes affording that supply to such point or points as will enable the buildings for which a supply is required for domestic purposes to be connected thereto at a reasonable cost; but this subsection shall not require F8Scottish Water to do anything which is not practicable at a reasonable cost or to provide such a supply to any part of F7its limits of supply where such a supply is already available at such point or points.

F12Scottish Water shall also provide a supply of water for the purpose of complying with any other obligation imposed on F13it by this Act and may, if F14it thinks fit, provide a supply to enable F15it to exercise any of the powers conferred on F15it by this Act or for any other purpose which F16it considers is in the interests of the area comprising F17its limits of supply.

A supply of water under subsection (1) does not include a supply of water for the business of a laundry, or any business of preparing food or beverages for consumption otherwise than on the premises.

“Domestic purposes” in any local enactment relating to the supply of water shall be construed in accordance with sub-sections (1) and (2).

Subject to the following provisions of this Act, F21Scottish Water shall give a supply of water on reasonable terms and conditions for purposes other than domestic purposes to the owner or occupier of any premises within F22its limits of supply who requests F23it to give such a supply to those premises.

F24Scottish Water shall not be required to give a supply of water in accordance with subsection (1) if F25its ability to meet existing obligations to supply water for any purposes or probable future requirements to supply water for domestic purposes, without having to incur unreasonable expenditure in constructing new waterworks for the purpose, would thereby be endangered.

F26Scottish Water may require, as a condition of giving a supply of water under this section, that the person requesting the supply shall enter into an agreement undertaking to pay to F27it in respect of each year a sum not exceeding one-eighth of the cost of providing and laying the necessary mains (less any amounts received by F28Scottish Water in respect of water supplied whether for domestic or non-domestic purposes in that year from those mains) until the expiration of a period of 12 years or such lesser period as may appear to F28Scottish Water to be appropriate.

Any question arising as to the terms and conditions on which water is to be supplied F29(not being a question as respect charges for the water which is to be supplied) under this section and any question whether F30Scottish Water is justified in refusing to give a supply shall in default of agreement, be referred to the Secretary of State and the Secretary of State may determine it himself or, if he thinks fit, refer it for determination by arbitration.

Where F31Scottish Water is required to give a supply of water under this section, the powers of F32Scottish Water and of persons supplied or proposed to be supplied by F33it to lay mains and pipes for providing a supply of water for domestic purposes and to break open F34roads for that purpose shall apply for the purpose of the provision of a supply under this section.

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Subsection (1) above shall not have the effect, where any water is used or made available for any of the purposes mentioned in paragraph (a) or (b) of that subsection, of requiring a reduction in the charges imposed in respect of the provision for other purposes of the supply from which the water is taken.

Subject to the provisions of this section, a F42local authority or F43Scottish WaterF44shall make full compensation to any person who has sustained damage by reason of the exercise by them F45or it of any of their F46or its powers under this Act in relation to a matter as to which he has not himself been in default.

The escape of water, however caused, F48 from one of F49Scottish Water’sF48 communication F50or supply pipes or mains shall for the purposes of subsection (1) above be taken to have been brought about by the exercise by F51it of powers under this Act.

Any question arising under this section as to the fact of damage or as to the amount of compensation shall, in case of dispute, be determined by arbitration.

A claim for compensation under this section shall not be maintainable unless it is made within F5224 months after the date on which it is alleged to have arisen.

The provisions of this section shall be without prejudice to any other provisions in this Act relating to compensation.

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If after a local inquiry has been held in pursuance of subsection (1), the Secretary of State is satisfied that there has been such a failure on the part of F66Scottish Water , he may make an order declaring F67it to be in default and directing F67it for the purpose of remedying the default to discharge such of F68its functions in such a manner and within such time or times as may be specified in the order or, as the case may be, to take such steps within such time or times as may be specified in the order to obtain new powers or to extend F69its existing powers.

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