International water law has been unable to translate its principles into effective institutions for the management of shared water resources. National interest has often override any real commitment to the principles of international water law as reflected by the draft Articles of the ILC. Based on the theory of sovereignty, it emphasises a discretionary power to co-operate. However, the community of interest's theory is rather recommended as basis for co-operation. The draft Articles does not take sufficient account of the role domestic water policies, international relations and economics play in the co-operation of states. An integrated approach that considers social and economic effects within an environmental context is proposetL The political economy of water includes the potential of 'virtual water' through the importation of staple grains. A holistic approach, taking global trade in agriculture into account, is recommended. The SADC countries should also consider the potential of regional trade in 'virtual water'. / Law / LL. M. (Law)