Water Supply (Water Fittings) Regulations 1999
The actual text from the regulations:
Schedule 2: Paragraph 2: Materials and substances in contact with water
2. (1) Subject to sub-paragraph (2) below, no material or substance, either alone or in combination with any other material or substance or with
the contents of any water fitting of which it forms a part, which causes or is likely to cause contamination of water shall be used in the construction, installation, renewal, repair or replacement of any water fitting which conveys or receives, or may convey or receive, water supplied for domestic or food production purposes.
(2) This requirement does not apply to a water fitting downstream of a terminal fitting supplying wholesome water where-
a. the use to which the water downstream is put does not require wholesome water; and
b. a suitable arrangement or device to prevent backflow is installed.
The legal guidance part:
G2.15 Jointing compounds used for sealing screwed water fittings should comply with BS 6956: Part 5.
And the water industry recomendation:
R2.15 Only jointing compounds that comply with G2.15 are to be used for jointing screwed pipes and fittings. Other proprietry compounds and hemp are not acceptable as they may promote microbial growth.
Potable water (correctly known as "wholesome water") is drinking water supplied via the service pipework. It could be argued that hot water from a cylinder is not normally drunk however, the AFAIK although hot water falls into category 2 it is still regarded as wholesome regarding contamination from unsuitable materials.
Therfore HEMP is NOT permitted on wholesome ( ie HOT) water pipework/fittings.
There are suitable alternatives to hemp that comply with BS 6956 Pt5 eg Fernox Fibre tape.