The Central Board shall continue to perform the functions transferred to them on 16th May 1968 under section 4 of the Water (Scotland) Act 1967 from joint water boards whose limits of supply were comprised in their area and whose principal function was the supply of water in bulk to the constituent authorities of those boards.

There shall be assigned to the Central Board the function of developing new sources of water supply for the purposes of giving a supply of water in bulk to two or more water authorities whose limits of supply are comprised in the area of the Board.