diff --git a/src/town_type.h b/src/town_type.h
index dec057d44a..d23d9910de 100644
--- a/src/town_type.h
+++ b/src/town_type.h
@@ -77,6 +77,9 @@ static constexpr int RATING_BRIBE_UP_STEP = 200;
 static constexpr int RATING_BRIBE_MAXIMUM = 800;
 static constexpr int RATING_BRIBE_DOWN_TO = -50; // XXX SHOULD BE SOMETHING LOWER?
 
+static constexpr int RATING_WATER_RIVER_DOWN_STEP = -200; ///< removing a river tile
+static constexpr int RATING_WATER_MINIMUM = RATING_MINIMUM; ///< minimum rating after removing water features near town
+
 /** Town Layouts. It needs to be 8bits, because we save and load it as such */
 enum TownLayout : uint8_t {
 	TL_BEGIN = 0,
diff --git a/src/water_cmd.cpp b/src/water_cmd.cpp
index 90f962d376..78d07707cb 100644
--- a/src/water_cmd.cpp
+++ b/src/water_cmd.cpp
@@ -40,6 +40,7 @@
 #include "water_cmd.h"
 #include "landscape_cmd.h"
 #include "pathfinder/water_regions.h"
+#include "town_type.h"
 
 #include "table/strings.h"
 
@@ -597,6 +598,15 @@ static CommandCost ClearTile_Water(TileIndex tile, DoCommandFlags flags)
 					Company::Get(owner)->infrastructure.water--;
 					DirtyCompanyInfrastructureWindows(owner);
 				}
+
+				/* Handle local authority impact */
+				if (IsRiver(tile)) {
+					if (Company::IsValidID(_current_company)) {
+						Town *town = ClosestTownFromTile(tile, _settings_game.economy.dist_local_authority);
+						if (town != nullptr) ChangeTownRating(town, RATING_WATER_RIVER_DOWN_STEP, RATING_WATER_MINIMUM, flags);
+					}
+				}
+
 				DoClearSquare(tile);
 				MarkCanalsAndRiversAroundDirty(tile);
 				ClearNeighbourNonFloodingStates(tile);