Manufacturers and retailers of products such as dishwashers and showers will soon have to include water efficiency labels in their listings.
The labels will be similar to the traffic light energy efficiency labels already in use.
The scheme aims to help people to make informed choices about how they can save water easily.
The new measure is part of the government’s response to a consultation on water usage that aims to reduce average personal consumption to 110 litres per person per day by 2050.
Other measures include a tighter standard of 110 litres per person per day for new homes instead of the current of 125 litres.
That would require developers to install more efficient systems.
Water companies could also be asked to develop a more efficient pipe leakage strategy.
According to official data, in the last ten years, around 25% of total leakage came from customer supply pipes.
Environment Minister Rebecca Pow said: “We often take our supply of clean and plentiful water for granted. We must all work harder to tackle the pressures on our water resources by understanding and challenging ourselves on how much water we need to use in our daily lives.
“While I have been clear that water companies must up their game and take urgent action in reducing leakage, this new package of measures will help us all to use less water.”