Anglian Water's Head of Resources Mike Cook has told ITV Anglia the company is considering using the Grand Union Canal to move water from the Midlands to the Milton Keynes area.
The news follows plans revealed this morning to move 30 million litres of water a day from bore holes under Birmingham to an Anglian Water reservoir in Lincolnshire.Neither plan has yet been improved but they are seen as a cheaper alternative to building a custom made national water grid.
Veolia Water Central - which covers Herts, Essex, Beds and Bucks - has announced it is lifting its hosepipe ban with immediate effect.
Three of the UK's biggest water companies have lifted hosepipe bans which have been in place since April.
The Environment Agency says the recent wet weather has greatly reduced the risk of drought and widespread water restrictions this summer.