The Department of Water and Sanitation (DWS) has highlighted that over the last decade, water infrastructure and supply services have deteriorated. South Africa’s water sector is now in crisis, highlighting the urgent need for strengthening the water supply.
According to the DWS’s 2023 Blue Drop report, water supply systems declined in performance between 2014 and 2023. The 2022 Green Drop assessment shows that 64% of wastewater treatment works are at high and critical risk. This has negative implications for the environment and human health.
Progress in institutional reform and regulation
The urgency of the crisis is receiving the necessary state attention. Phase II of Operation Vulindlela was launched in May 2025.
Among its core priorities is the water sector, with targeted reforms aiming to:
- Address root causes of service delivery failures.
- Protect the quality of drinking water.
- Implement institutional reforms to improve the management of water resources.
- Strengthen the regulation of water services provision.
- Support the introduction of private sector participation through the Water Partnerships Office and the PPP Unit.
Importantly, the government has made progress in institutional reform and regulation. This is evident in proposed changes to key legislation, specifically the Draft National Water Amendment Bill and the Draft Water Services Amendment Bill, published in November 2023. These reforms are expected to play a critical role in strengthening water supply across the country.
Proposed changes to the Water Services Act
The Draft Water Services Amendment Bill (Amendment Bill) proposes several changes:
- Adjusting the approval process for water services providers to operate.
- Requiring a licence as a precondition to operate.
- Altering how water boards are established and function.
- Providing the Minister with enforcement and rectification powers in addition to monitoring and intervention powers.
Additional approvals to operate as a water services provider
The draft Services Bill amends Section 22 of the Water Services Act. The amendment lists additional criteria municipalities must apply before approving a provider’s right to operate.
The added criteria serve two purposes:
- Provide approvals only to providers holding operating licences.
- Prevent approvals for those without technical capacity or sustainable finances.
Specifically, municipalities must:
- Follow the process of reviewing and deciding on the appropriate service mechanism as required by Chapter 8 of the Municipal Systems Act, 2000.
- Assess a provider’s financial and environmental sustainability.
- Consider all licence requirements.
- Make providers accountable for service delivery.
- Require disclosure and transparent reporting of all funding.
Licence to operate as a water services provider
The Services Bill proposes a new Section 22A. It prohibits any person from operating as a water services provider without a licence granted by DWS. The licensing process and conditions are not described in detail.
The Minister of DWS must prescribe these in regulations within 12 months of Section 22A’s enactment. Existing providers must also apply for a licence within 12 months of the new regulations.
Section 22D empowers the DWS to intervene if a provider fails to meet licence conditions. DWS can direct failing providers to comply with set conditions or rectify failures within a reasonable timeframe, considering the impact on service delivery.
Persistent failure may result in licence revocation. After revocation, Section 22D(3) requires the municipality to approve another licensed provider, while also putting temporary service delivery arrangements in place.
Evolving the establishment and functions of water boards
Currently, Section 28 of the Water Services Act empowers the Minister of DWS to establish, rename, alter or disestablish a water board. The Services Bill enables the Minister to establish as many boards as are considered necessary to meet their function and purpose.
It also empowers the Minister to:
- Determine or re-determine service areas
- Merge one board with another
The Bill proposes removing current consultation requirements. Instead, the Minister must publish a notice in the Gazette and three national newspapers, in line with the Use of Official Languages Act, 2012. This aims to streamline the establishment and reconfiguration of boards.
A relevant example is the merger of Umgeni Water and Mhlathuze Water. The Minister extended Umgeni Water’s boundary to include Mhlathuze Water, renamed it uMngeni-uThukela Water, disestablished Mhlathuze Water and transferred staff, assets and liabilities. The merger sought to improve service delivery in KwaZulu-Natal and streamline operations, contributing to strengthening water supply in the province.
The Services Bill also clarifies and expands water boards’ functions. Currently, they provide services to other institutions. They may supply untreated water, provide water for industrial use with municipal approval, accept industrial effluent and act as providers to consumers.
The Bill proposes a new Section 28A. It states that the main functions of boards include:
- Managing bulk water infrastructure.
- Providing bulk water to authorities, providers and bulk consumers.
- Managing bulk sanitation infrastructure for wastewater treatment.
The mandate of water boards includes:
- Efficiently planning, developing, managing, operating, maintaining and supporting bulk infrastructure for water and sanitation.
- Meeting the needs of current and future users, aligned with social, economic and international obligations.
- Supporting municipalities by providing services directly or on their behalf, as requested or directed by the Minister
These reforms are expected to significantly strengthen water supply at the national level.
Ministerial intervention in a water services institution
Section 62A of the Services Bill allows the Minister, or a delegate, to issue a directive. A water services institution, whether an authority, provider, board, committee or intermediary, must rectify its conduct if it fails to perform any legal function.
Together, the changes to the Water Services Act and the National Water Act, along with Phase II of Operation Vulindlela, signal significant transformation in South Africa’s water sector. These initiatives are central to strengthening water supply for citizens.
National government’s new powers to hold municipalities, boards and providers accountable should improve service delivery. This complements other reforms such as amendments to Treasury Regulation 16, Municipal PPP Regulations, the creation of the National Water Resources Infrastructure Agency and the Water Partnerships Office.
Although predictions are difficult, greater oversight combined with private sector involvement could address underperformance at local government level. These changes aim to ensure reliable water access, financial sustainability of institutions and improved outcomes for citizens. Strengthening water supply remains the primary goal of these interventions.
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Calvin Nchabeleng | Partner | mail me | |
Makgati Makgatho | Senior Associate | mail me | |
| | Webber Wentzel | | |
