Although freshwater is relatively abundant in the European Union, many areas, especially in the Mediterranean, still suffer from water shortages, resulting in environmental and economic implications. Water scarcity created by population growth and urbanization has particularly affected highly populated areas in recent years. The overexploitation of water resources, for irrigation purposes but also industrial use and urban development, is one of the main threats to the EU's water environment, while the availability of quality water is a critical condition for the development of economic sectors. Not addressing these imminent challenges can have a lasting economic impact on the continent. Increasing numbers of droughts in Europe can lead to economic losses as well as a potential decline in investment in the affected regions.

The Regulation introduces minimum requirements on water quality monitoring, guidelines for the aforementioned risk management and standardized procedures to ensure transparency. The Regulation on the minimum requirements for water reuse is due to be published in the Official Journal of the European Union and will enter into force 20 days after publication. It will apply in three years after coming into force.