"Condition 3. Free Tap Water for Customers
Many premises already offer free tap water. This condition means that all premises have to give
customers tap water for free if they ask for it. This helps people to space out their drinks and not
become intoxicated quickly, which reduces the risk of crime and disorder occurring.
The tap water you provide should be suitable for drinking and must be provided where reasonably
available.
What is meant by “reasonably available” is a question of fact; for example, it would not be
reasonable to expect free tap water to be available in premises for which the water supply had
temporarily been lost because of a broken mains supply."
http://www.alcoholconcern.org.uk/assets/files/New%20mandatory%20licensing%20conditions%20-%20Home%20Office%20April%202010.pdfI would interpret it to mean customers need to be given free tap water..I would say they must be a customer though, so if they didn't order anything else and only ordered tap water that wouldn't make them a customer.