Don't see why not. Yorkshire Water have spent an awful lot of money in the past few years installing pipework to shift water from plentiful areas to the needy. Consequently, despite the lack of rain, our reservoirs are full. Providing the supplied water companies pay a reasonable fee to the supplying company, surely a kind of national grid is quite feasible
Water can be poisonous - Do you have anything to back that up? There are aqueducts around the world to supply water some hundreds of miles long. In this country in the time of Drake in the south west there were water leats over 20 miles long bringing fresh water off Dartmoor. I'm fairly sure that canals were used to transport water.
Currently in the south west water area there isn't a water shortage or drought. The main reservoirs are at comparable levels to last year but are lower than in 1995.
When referring to drought and water levels in England you have to be careful not to confuse the south east of England with the rest of England.