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This document sets out the process we followed to select the winners of round 1 of our 'Innovation in Water Challenge' innovation competition - and the reasons for our decisions. In 2021, water companies in England and Wales, in partnership with others, have been invited to enter two types of competition with their innovations: (1) A £2 million Innovation in Water Challenge (IWC) with the opportunity to receive funding of up to £250,000. (2) A £40 million Water Breakthrough Challenge with the opportunity to receive funding up to £10 million. The first round of the IWC opened on 18 January 2021, and we announced the winners of the challenge on 21 April 2021.