The area served by Wimbleball reservoir would be impacted by the proposed NEUB, if it was introduced.
That includes parts of Mid Devon, all of East Devon and extends into part of Dorset and Exmouth, Crediton, Honiton and Lyme Regis.
South West Water has applied to the Department for Environment, Food & Rural Affairs and the final decision sits with the government.
The application follows similar applications earlier this year by both Southern Water and South East Water, external.
The last time SWW introduced a NEUB was in West Cornwall in 1995.
BBC News
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