In a document published by the Conservatives and Liberal Democrats, the joint government said it would "take forward the findings of the Pitt Review to improve our flood defences, and prevent unnecessary building in areas of high flood risk".
The document, entitled The Coalition: our programme for government said the government would address conclusions made in the Cave and Walker reviews, which looked at competition and innovation in water markets, as well as charging and metering for water and sewerage services.
One of the aims set out in the agreement includes to "reform the water industry to ensure more efficient use of water and the protection of poorer households".
The 36 page document was published a week after the coalition released an initial agreement, which backed anaerobic digestion to promote a "huge increase" in energy from waste (see Water & Wastewater International story).
Writing in the foreword of the full programme, Prime Minister David Cameron and his deputy Nick Clegg said: "We both want to build a new economy from the rubble of the old. We will support sustainable growth and enterprise, balanced across all regions and all industries, and promote the green industries that are so essential for our future.
"This document shows how, with radical plans to reform our broken banking system and new incentives for green growth."