The Welshpool area will be receiving its water from a new provider this summer after Ofwat, the water regulator, approved Severn Trent's application to vary its licence.
The decision will allow the company to create a new entity dedicated to the interests of its Welsh customers.
Headquartered in Packsaddle near Wrexham, the new company, Hafren Dyfrdwy, will bring together all of Severn Trent's Welsh customers in Wrexham, Powys and Monmouthshire for the first time and will be providing services to around 100,000 customers and 7,000 businesses.
Sarah Bentley, Chief Customer Officer at Severn Trent, said: “The wonderful water you get and the great customer service you’re used to will stay the same, the key changes are that all our Welsh customers will be part of a Welsh company, and our English customers will be part of an English company.
“The change will allow us to ensure that we bring the best of both companies together and also ensure we have the right local focus for our customers in each country.
“There’s nothing that our customers need to do. We will be sending out information about the launch of Hafren Dyfrdwy or the move to Severn Trent over the coming weeks – and customers can carry on enjoying their water in the same way they always have.”
The news has been welcomed by local Assembly Member, Russell George, who recently met the Consumer Council for Water to discuss the new arrangement.
“I was pleased to attend recent meetings of the Consumer Council for Water in both the National Assembly in Cardiff and in Newtown where I was keen to promote that the consumers voice be heard loud and clear throughout the changes which will see the introduction of a new water company to serve Mid Wales, Hafren Dyfrdwy,” he said.
“Whilst the vast majority of Wales has been served by Welsh Water, most of Montgomeryshire's residents have been served by Severn Trent, which operates in the Midlands, Mid Wales and the Dee Valley.
“Following Severn Trent’s acquisition of Dee Valley Water in North Wales, it applied to Ofwat to vary its licence so that it can establish a single company to operate in Wales under Welsh regulations.
“I think that this is a natural approach and I understand customers don't need to do anything ahead of the change in July.”
Severn Trent will be writing to its customers to explain the proposed changes in the coming weeks.