Council leaders say crumbling water infrastructure and severe drought across the south and east of England are jeopardizing the government's plan to build 1.5 million homes by the end of parliament, with half the country now in serious drought for the second consecutive year.

"We cannot magic up more water," said Paul Harvey, the Independent leader of Basingstoke and Deane council in Hampshire, which is being told to build more than 1,000 houses a year. A water cycle study found demands from new housing may exceed sustainable supply limits.

The Environment Agency's mapping shows roughly a third of the country has no additional river water available under normal conditions to serve new homes or industry. In some areas targeted for growth, fenlands face collapse from over-extraction and chalkstreams require artificial maintenance, according to the Guardian's reporting, Guardian business reports.