Power could be put “back into people’s hands” to help deal with sewage dumping.
This comes after long running campaigns in Bolton to clean up the borough’s rivers and waterways.
Newly elected Bolton North East MP Kirith Entwistle says she expects new measures to be brought in to reform the sector.
She said: “We’ve just had our first week in government and we’re really keen to hit the ground running.
“With this policy announcement I think what’s really good is that we’re trying to put power back in the hands of people and back into the hands of consumers to really hold the water companies to account.
“So, this really will make a big difference for consumers in Bolton.”
She added: “It’s a good start and it’s a welcome announcement so I’m hopeful that things are going in the right direction and I’m hoping to work with the DEFRA secretary to make sure we see those changes made.”
Ms Entwistle has previously campaigned for the government to take stronger action against water companies
In June last year she launched a petition calling for tougher regulation of water companies to prevent sewage dumping.
Ms Entwistle said at the time that raw sewage was affecting the River Croal to the River Tonge, both now in her constituency.
Last week the new environment secretary Steve Reed met with water companies to set out a series of reforms.
He says that this will include ensuring that water infrastructure funding is ringfenced and can only been spent on upgrades.
There will also be changes in the rules to bring water users to the centre of companies’ objectives and giving consumers the power to summon managers to meetings.
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Mr Reed said: “This unacceptable destruction of our waterways should never have been allowed, but change has now begun so it can never happen again.
“Today I have announced significant steps to clean up the water industry to cut sewage pollution, protect customers and attract investment to upgrade its crumbling infrastructure.
“That change will take time.
“Over the coming weeks and months, this government will outline further steps to reform the water sector and restore our rivers, lakes and seas to good health.”
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