**GUIDANCE UPDATED 12 APRIL 2022** At PR19 Ofwat announced a £469 million ring-fenced development fund for companies to investigate and develop strategic water resource solutions that benefit customers, protect and enhance the environment and benefit wider society. Delivery of these solutions is subject to a formal gated process where decisions are made on delivery penalties and solution funding progression. The details of gate allowances, activities at each gate and delivery incentives are described in more detail in the document 'PR19 final determinations: Strategic regional water resource solutions.' The purpose of this guidance is to describe the gate two process and set out the expectations for solutions at standard gate two. This guidance should be read alongside the All Company Working Group (ACWG) Design Principles, Process and Gate two Interim Guidance, which details overarching Design Principles of the National Infrastructure Commission (Climate, People, Place, Value).