Ofwat has appointed its second new company since privatisation to supply water and sewerage services to domestic customers.
The new company, Independent Water Networks Limited (IWNL), will supply a 950-home development at Long Croft Road, in Corby, Northamptonshire.
The first new company, SSE Water, was announced earlier in the month and will provide water to the Portway housing development near Salisbury.
The economic regulator has granted IWNL an inset appointment, where one company is replaced by another for a specific geographical area. For this appointment, IWNL will replace Anglian Water.
IWNL will now buy water from Anglian Water, and discharge sewage to Anglian Water's Network.
IWNL has said that customers at Long Croft Road will have a 2007-08 water volumetric charge 5% lower than Anglian Water's. Other charges will be the same.
In the future Ofwat requires that IWNL's customers will pay no more than if had they been supplied by Anglian Water.
Ofwat also requires the customers to receive a quality of service as least as good as if Anglian Water had served the Long Croft Road site.