Cities must go further and further away to find new, more costly sources of water for human consumption while industries and agriculture continue to compete for increasingly scarce water resources. This may already be seen occurring within the Nelson Mandela Bay Metro where the severe drought being experienced during the past 18 months has severely depleted water supply dams. One of the main supply dams to the Nelson Mandela Bay Municipality is situated within the Baviaanskloof Nature Reserve and World Heritage Site. The potential of funding the Baviaanskloof Nature Reserve and World Heritage Site with payments for ecosystem services (water) obtained for water services supplied to the Nelson Mandela Bay Municipalities and agriculture in the Gamtoos River Valley will ensure financial sustainable for the Baviaanskloof Nature Reserve and World Heritage Site in the long term. This ability to become financially independent and generate its own income will place the Baviaanskloof Nature Reserve and World Heritage Site in a unique position within the conservation community in South Africa as only a very few protected areas are self sustaining through payment for an ecosystem service.