"Not enough water" is a standard reply to any proposal for building things in East Anglia - whether that is EWR or Sizewell C, with good reason as Water is a real issue in the area, particularly around Cambridge, but solutions do exist, including reducing demand, supplying water from outside the area, etc. Of course, choosing and implementing solutions isn't up to the railway, and it shouldn't be. As everywhere, NIMBYs will come up with any argument to oppose developments that sounds vaguely reasonable, and in Cambridge one of these is water
Of course the hospitals would benefit by making commuting in easier for staff, (some) patients, and visitors, so what point they're trying to make there I'm not sure about
No, Anglia Water don't run the bus service, but in Cambridge they don't supply the water either. The only thing that Anglia Water do in Cambridge is sewage. So don't get onto Anglian Water unless you want to talk about sewage,
Cambridge Water Company supplies the water in Cambridge but it is now struggling to meet demand. Cambridge Water Company's sources are chalk aquifers of limited capacity. It doesn't have reservoirs that are fed independently from the chalk aquifers. Over abstraction of the aquifers leads to reduced flow into the chalk streams that feed the River Cam, damaging important wildlife habitats. The Cambridge area has more than 20 chalk streams, about 10% of all the chalk streams in the world. If over abstraction and or drought happen then eventually Cambridge will literally run out of water and the chalk stream habitats will be destroyed.
The water supply issue does have to be resolved to permit the level of economic development in Cambridge that will make EWR justifiable.
Absolutely, water abstraction from the aquifers needs to be reduced - which will likely require action from government