Last week Yorkshire Water, which serves 2.4 million homes in the region, was given the lowest possible environmental rating by the Environment Agency after a sharp rise in pollution incidents.
A day later chief executive Nicola Shaw, who has led the firm since 2022, announced she would be stepping down.
The government said it would also be giving mayors “new powers through the strengthened Water Bill to hold water companies to account for their performance”, and has asked local leaders to submit proposals on how they want to run the new bodies by the end of the year.
West Yorkshire Mayor Tracy Brabin said the privatisation of water had been “a disaster for our region”.
She said: “I’ve long called for directly-elected Mayors to be able to hold water companies to account, influence their operations, and direct the money raised from fines to support those communities hit hardest by illegal sewage dumping.
“Through this new regional water council, we will do everything we can to ensure that Yorkshire Water finally puts people above profit and helps us build a greener, more affordable region with cleaner rivers and lower bills.”
A Yorkshire Water spokesperson said: “We support giving communities and regional leaders a stronger voice in decisions about water and the environment in Yorkshire.”
The firm had “already been working” with stakeholders across the region to develop “closer and more collaborative” relationships.
The spokesperson added: “We welcome the opportunity to build on this and will work constructively with government, regional leaders and other stakeholders as the proposals develop.
“Our focus will remain on delivering the best possible outcomes for our customers, communities and the environment in Yorkshire.”
