In the 20th century, Wales saw a revival in its national status. Plaid Cymru was formed in 1925, seeking greater autonomy or independence from the rest of the UK. In 1955, the term England and Wales became common for describing the area to which English law applied, and Cardiff was proclaimed as capital city. In 1962 the Welsh Language Society (Cymdeithas yr Iaith Gymraeg) was formed in response to fears that the language might soon die out. Nationalism grew, particularly following the flooding of the Tryweryn valley in 1965, drowning the village of Capel Celyn to create a reservoir supplying water to Liverpool. In 1966 the Carmarthen Parliamentary seat was won by Plaid Cymru at a by-election, their first Parliamentary seat. A terror campaign was waged for a short period by the Free Wales Army and Mudiad Amddiffyn Cymru (MAC – Welsh Defence Movement). In the years leading up to the investiture of Prince Charles as Prince of Wales in 1969, these groups were responsible for a number of bomb blasts destroying water pipes and tax and other offices. In 1967, the Wales and Berwick Act 1746 was repealed for Wales, and a legal definition of Wales, and of the boundary with England was stated.

A referendum on the creation of an assembly for Wales in 1979 (see Wales referendum, 1979) led to a large majority for the “no” vote. However, in 1997 a referendum on the same issue secured a “yes”, although by a very narrow majority. The National Assembly for Wales (Cynulliad Cenedlaethol Cymru) was set up in 1999 (as a consequence of the Government of Wales Act 1998) and possesses the power to determine how the central government budget for Wales is spent and administered (although the UK parliament reserves the right to set limits on the powers of the Welsh Assembly). The 1998 Act was amended by the Government of Wales Act 2006 which enhanced the Assembly’s powers, giving it legislative powers akin to the Scottish Parliament and Northern Ireland Assembly. Following the 2007 Assembly election, the One Wales Government was formed under a coalition agreement between Plaid Cymru and the Welsh Labour Party, under that agreement, a convention is due to be established to discuss further enhancing Wales’ legislative and financial autonomy.