Water resources are a crucial resource in a large proportion of economic activity, both in rural and urban areas and resource sharing has become an increasingly important concept to achieve equitable distribution of scarce resources which are social-ecological, socio-economic and political in their nature (Breen et al., 2003). Water scarcity and the increased demand from high value water users have decreased opportunities for increased stakeholder participation. The National Water Act of 1998 is part of environmental legislation promulgated to redress the historical inequitable access to natural resources. Previous studies (Versfeld, 2000; Schreiner and van Koppen, 2001; Armitage et al., 1999; van Wyk et al., 2006) have indicated that the current allocation mechanism of compulsory licensing, mainly in the agricultural sector, has not resulted in meaningful resource sharing or empowerment as agriculture does not seem to perform as well as other water use sectors in terms of provision of economic benefits. Within the context of striving for greater equity and empowerment (1) in resource sharing, the key issues of participatory governance of water resources in creating sustainable revenue from sharing water resources are evaluated in this study as a basis for the aim of investigating water trading as a suitable allocation mechanism to promote equitable water resource sharing. Resource sharing will “ultimately rest on negotiated trade-offs between resource users” (van Wyk et al., 2006:9) and there are therefore two considerations for achieving equity in water allocation: capacity through legislative means, and stakeholder perception of how access to resources can be beneficial, which will in turn “influence how human behaviour, and ultimately resource use patterns, evolve” (van Wyk et al., 2006:7). Traditionally, water has been allocated as a usufructuary resource in value chains, such as agriculture, forestry, mining and industry, in addition to fulfilling its function within the Reserve for ecological and basic human needs. Water thus becomes an integral part of a value chain which extends from allocation and conservation of water resources, through various production functions, culminating in the consumption and disposal functions associated with products created from use of water, in other words, a tradable economic commodity (Backeberg, 1997). The objectives which guide this research are focussed on understanding the dynamics of the water value chain and status of resource sharing, and whether water trading can promote empowerment through increased resource sharing and creation of benefits. The objectives are: I. Using value chain methods to understand the status of resource sharing in the Mhlatuze Catchment. II. Using a value chain method of analysis to identify constraints to empowerment of rural communities within the water sector, and identify how water trading as an allocation mechanism could provide potential solutions. III. Investigate the stakeholder perception of the suitability of water trading in promoting resource sharing through empowerment. Using the value chain methodology to understand the dynamics driving stakeholder participation and production functions, the resulting water sector map was used to identify flow of benefits and constraints in creating benefits from access to water. Further analysis of the value chain explored the possibility of enhancing governance through increasing subjective, objective and competency based capacity. Inductive qualitative research investigated the acceptance of water trading as an allocation mechanism which could improve empowerment in the context of resource sharing. This methodology could be replicated to investigate the potential of any resource allocation policy. Preliminary literature reviews revealed the Mhlatuze catchment as a suitable case study area as it is an over-allocated system (Versfeld, 2000; Pott et al., 2005) in which the compulsory licensing mechanism is being implemented. The majority of economic activity still takes place through commercial agriculture and industry in the middle and lower catchment, although demand for water exceeds supply within these groups of participants, whilst the majority of the population resides in the upper catchment. The sector map identified the status of the stakeholders and the extent to which they participated and interacted within the value chain. Semi-structured interviews were then conducted with previously identified participants selected from each of the main groups in the value chain to determine whether there was understanding of the empowerment possibilities presented by water trading as an allocation mechanism. The findings of the sector study showed that the rural poor communities were an integral part of the water value chain, although the status of creation of benefits was limited to those who had access to additional resources to create revenue from water use. Analysis of the value chain indicated that benefits could be created from water trading without having to increase the resource base, important in the context of scarce resources. In addition, the ability of poor communities to participate in the value chain through water trading, as opposed to traditional resource hungry production functions, has the potential to create meaningful empowerment in terms of improving the confidence, opportunity and capacity of these stakeholders to participate in creating benefits. The discussions with stakeholders indicated that water trading as an allocation mechanism would more likely lead to empowerment of previously disadvantaged communities whilst not adversely affecting current value chain actors by disenfranchising them of a necessary resource as could happen through compulsory re-allocation. (1) Empowerment in this dissertation is defined as procedures and legislation which improve access to, and use of, resources in order to create beneficial outcomes for the previously disadvantaged groups in South Africa. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2009.

The aim of this study is to focus on how the Vulindlela Community benefited from water supplied to them through DWAF and Umgeni Water funding with emphasis on the sustainability of the project. The study also aims to find out from Vulindlela Community whether the scheme met its objectives. The sample consists of 2 888 respondents from Vulindlela area. The measuring instruments used are the interviews and questionnaire constructed by the researcher. The results of this study indicate that all the objectives of the scheme were met and that the community especially women, unemployed men and local contractors all benefited from the project. The issue of sustainability of the scheme is the real problem. The community (Branch Officers, local plumbers, meter readers and committees) has been trained in handling water related issues but the community has not accepted the ownership of the scheme. If the ownership of the scheme is lacking, there will be problems throughout. The non-payment of water used by the community will continue to be a problem if the community itself does not take the ownership of running and maintaining it. The community needs to be empowered and be trained on the operation and maintenance (OM cost recoveries and the tariff structure. The results also indicate that the community understands the free water policy and that most of them are using less than 6 kilolitres per month. The willingness to pay from the community is low, to such an extent that most of the households are due for disconnections or restriction. This is supported by the fact that most of them are earning less than RI 000 - 00 per month and in some households the bread winner is an elderly person who is dependent on government grants. The 6 kilolitre free water is not sustainable under the conditions, which this community find themselves in. There are challenges facing the scheme and these are discussed under Chapter 5. Since some limitations of this study were found, the results must be interpreted with caution and one should be cautious in applying them. / Thesis (M.B.A.)-University of KwaZulu-Natal, Pietermaritzburg, 2005.

South African legislation, as summarised in The Strategic Framework for Water Services (Department of Water Affairs and Forestry, 2003), makes local authorities responsible for all water services to individual consumers. As Water Services Authorities (WSAs), municipalities must appoint Water Services Providers (WSPs) to implement water services. The legislation allows a range of organisations to act as WSPs. The Strategic Framework also lays down norms and standards with regards to continuity of water supplies and water quality. The country has adopted a policy of "Free Basic Water", which requires WSAs to provide a basic level of services free of charge. Six kilolitres per household per month is the norm adopted by most municipalities. In deciding on the institutional arrangements for the provISIon of water serVIces, municipalities need to decide what functions, if any, to outsource. Most international literature that reviews experiences of the International Water Decade advocates community management of rural water supplies, pointing to failures of government run, centralised management of rural schemes. A strong reason given for choosing community management is the sense of "ownership" this gives to local communities. Traditional theories on management by government organisations use a "steering" model, in which the government sets the course for policy and administrators implement the policies decided upon. Since the 1980s, a new paradigm for analysing government has emerged, emphasising the limits to governments' power to act as it wishes. The new model is one of networks of various interdependent organisations, often with the government at the centre. Such a model can be used to depict organisational relationships in rural areas of South Africa. In the early 1990s, a number ofNGOs implemented rural water schemes using the community management approach. However, after the passing of legislation making municipalities WSAs, very few municipalities have seriously considered community management, or any formal role for local community based organisations. Efforts to assess the effectiveness of municipalities' water service delivery IS severely hampered by a lack of usable data. Since starting to take responsibility for water schemes from DWAF and other bodies in 2000, municipalities have struggled to manage service delivery effectively, largely due to a shortage of management and technical skills. Alfred Nzo District Municipality (ANDM) is one of the poorest municipalities in the country, with high levels of poverty. Approximately 50% of the rural population have adequate water services, that is 25 litres per person available within 200 metres of the household (Smith, 2006). The operation of services is paid mainly from the municipality's equitable share from national government. This report attempts to assess the effectiveness and efficiency of community management of rural water supplies. This is done by examining ANDM's community management model as a case study. The roles and responsibilities of various actors in the programme were analysed by interviewing the Support Services Agents (SSAs) engaged to co-ordinate the programme. The effectiveness of the water services were analysed using the SSAs' monthly reports, and this was compared with other available data. The experiences of other rural municipalities were also examined, focusing on their experiences with community participation. The model used by ANDM consisted of a water committee or board for each water scheme, which supervised the work of local operators and administrators. Operators carried out minor repairs, while the SSAs did monthly servicing of pumps and motors, and implemented major repairs, largely by supervising local operators and casual labourers. Committees submitted monthly reports to the SSAs, which were used as a basis for reports from the SSAs to the municipality. SSAs also reported on water quality. The figures for continuity of supply (measuring the operability of the infrastructure) varied considerably between the three SSAs. A possible reason for low figures from one SSA was that the figures also reflected water shortages in some schemes. Figures for water quality varied more than those for continuity, leading to a concern about the extent to which sampling and testing procedures were standardised. The figures were compared with figures from attitude surveys on water services recording consumers' perceptions about continuity of supply. The difference in data being measured, and concerns about the meaning of the figures from the SSAs' reports make direct comparisons impossible. However, the data indicates that for schemes served by two of the SSAs at least, a reasonably effective service was rendered. The cost to the municipality of providing water services was R4,19 per person per month, a relatively low figure compared with other municipalities. The four KwaZulu-Natal District Municipalities interviewed all reported negative experiences with community management of rural schemes that they inherited, and all four have opted for a centralised system, one using a partnership with a water board. None of the four municipalities had systematic data on continuity of service. Despite the difficulties in comparing the performance of ANDM to that of other municipalities, it is clear that the system employed by the municipality to use community management with the support of external consultants and NGOs was workable, sustainable and efficient. The participation of local community organisations assisted in some of the common problems that beset rural water schemes such as vandalism and water wastage. The report recommends that: • Municipalities with remote rural water schemes seriously consider community management as an effective and efficient delivery mechanism. • Where community management is employed, it is backed up with effective managerial and technical support. • The Alfred Nzo District Municipality reinstate the contracts with external Support Services Agents, which were the basis of effective management of and reporting on its rural water supply programme, unless equivalent internal capacity has been acquired to do the work done by the Support Services Agents. • Water Services Providers be required by water services authorities to submit regular data on service availability, continuity of supply and water quality, and Water Services Authorities in turn be required to submit similar data to DWAF. • DWAF issues guidelines on how proper separation of regulation and implementation roles be effected between WSAs and WSPs respectively when the WSP function is carried out internally. / Thesis (M.B.A.)-University of KwaZulu-Natal, Pietermaritzburg, 2006.

Thesis (MSc)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: A vast literature on the incompatibility of socio-economic development and environmental conservation (also referred to as sustainable development) has developed over the past few years. This study takes on the form of a critical, problemdriven discussion and evaluation of the applicability and viability of the concept of capacity-sharing to the current South African water management regime. Within the study, the complexities involved in the shift from a supply- to demandoriented management strategy are examined in depth. This transition in strategy proves to be problematic for water policy makers and managers because of past management regimes and structures, measurement related problems, incorrect or insufficient definition of criteria needed for demand-oriented approaches and the emotional complexities regarding water use. Developments in water policy are currently at a point where problems are experienced regarding the practical implementation of proposed water demand-oriented policy. The concept of capacity-sharing is explained and discussed in detail, leading to the identification of the applicability to three of the most important problems (basic contradiction within the 1998 National Water Act, initial allocation for market adoption and equity within the market) faced within the transition towards a demand-oriented approach. This study found that the concept of capacity-sharing does hold applicability in addressing the above-mentioned three problems towards the transition to a demand-side management approach. Capacity-sharing, therefore, should be part of this timely transition and the state should make use of the advantages of this concept. To support this view, seven studies are proposed for further research to address the problems as mentioned in section 5.2 of the thesis. / AFRIKAANSE OPSOMMING: 'n Uitgebreide literatuur aangaande die onversoenbaarheid van sosio-ekonomiese ontwikkeling en omgewingsbewaring (ook volhoubare ontwikkeling genoem) het oor die afgelope paar jaar ontwikkel. Hierdie studie neem die vorm van 'n kritiese, probleemgedrewe bespreking ten opsigte van die toepasbaarheid en relevansie van die konsep van kapasiteitsdeling binne die orde van huidige Suid Afrikaanse waterbestuur, aan. Die vele aspekte van die klemverskuiwing van 'n aanbod- na 'n vraag-georiënteerde waterbestuur-strategie, word ook beklemtoon. Hierdie oorgang is problematies vir waterbeleid-formuleerders en bestuurders as gevolg van vorige waterbestuur-ordes en strukture, meetbaarheid georiënteerde probleme, foutiewe of onvoldoende definieering van watergebruik-regte en die emosionele kompleksiteite van water. Tans, word probleme rakende die praktiese implementering van voorgestelde vraag-georienteerde waterbeleid ervaar. Die konsep van kapasiteitsdeling word in detail verduidelik en bespreek waarvandaan die toepasbaarheid op drie van die belangrikste probleme (basiese kontradiksie binne die 1998 Nasionale Waterwet, aanvanklike verdeling van water gebruik regte vir opname binne die mark en die kwessie van regverdigheid binne die mark) vir die oorgang na 'n vraaggeoriënteerde strategie geïdentifiseer word. Die studie het bevind dat die konsep van kapasiteitsdeling wel relevansie ten opsigte van die bogenoemde drie probleme tydens die oorgang na 'n vraag-georiënteerde strategie, inhou. Kapasiteitsdeling behoort dus deel te vorm van die oorgangsfase na 'n vraag-georiënteerde water bestuur strategie en die staat behoort gebruik te maak van die konsep se voordele. Ter ondersteuning hiervan word sewe studies voorgestel vir verdere navorsing ten opsigte van die probleme soos geïdentifiseer in afdeling 5.2 van die tesis.

Water is both a human right and a valuable commodity. Access to water for the rural poor is an international development concern that has been highlighted by the Millennium Development Goals adopted at the Millennium Summit in 2000 in Dublin, Ireland. South Africa's Free Basic Water policy is the government's response to assuring access to water for all - especially those who cannot pay. The policy, however, is required to work within an economic framework that promotes cost recovery and privatisation. The Free Basic Water Policy was officially implemented in July 2001. The policy was rolled out in most urban areas on or near this date. However, in rural areas it has proven much more difficult, and there are many areas that have not yet seen the implementation of Free Basic Water (FBW). This is partly due to varying financial, technical, political and logistical problems at the local and district municipality level. This research investigates the current situation in rural municipalities, looking specifically at FBW policy, institutional arrangements, operation and maintenance costs, cost per capita and affordability in relation to the Equitable Share allocations. Five case studies - compiled through interviews, document analyses, Participatory Rural Appraisal, and workshops provide a broad scale research base from which to analyse the current implementation of FBW in rural municipalities and ascertain whether this policy is affordable at this level. Water Service Authorities (WSA) are at varying levels of implementation, with few having a fully operational policy that is reaching rural areas. A costing exercise revealed that the service delivery price of water varies, but does follow a trend. From this trend a benchmark cost per capita of R5.84/month was determined. This price, although low, is not currently affordable in some municipalities due to insufficient government grants from National Treasury. These grants are fundamental to the sustainability of FBW and the situation must be resolved if FBW is to reach its target market - the poorest of the poor. The mixed success in the implementation of Free Basic Water in rural areas of South Africa should not be taken as indicative of future trends. As the local government transition to newly devolved powers and functions is completed, the capacity at this level to resolve the challenges is more likely. Subject to the continued strength of the South African economy, this policy could be a solution to the historical failure of service delivery to rural areas. / Thesis (M.Sc.)-University of KwaZulu-Natal, Pietermaritzburg, 2004.

Irrigation farmers in the Lower Orange (Kakamas and Boegoeberg) and Lower Crocodile rivers (between Nelspruit and Komatipoort) areas in South Africa were surveyed during October 2003 in order to study whether water marketing has promoted efficiency in water use. This study is a follow-up on research undertaken by Armitage (1999) in the Lower Orange River area and Bate et al. (1999) in the Lower Crocodile River area. Factors associated with future investment in irrigation farming were also studied in the Lower Orange River Irrigation Scheme. Econometric procedures used included principal component analysis, and logit and ridge regression. Results from the two areas will be discussed separately. Econometric results for the Lower Orange River farmers indicate that purchasers of water rights produce lucrative export grapes and horticultural crops with relatively less raisin, wine or juice grapes and less field crops; are more specialised in production (table grapes); have more livestock (probably liquidity factor) and have a less negative view of the five-year water license review period. The water market has facilitated a transfer of water use from relatively lower value crops to relatively higher value crops, and also promoted the use of more advanced irrigation technology. An investment model using Ridge Regression indicates that the following variables are associated with increased future investment in irrigation farming; higher expected profitability and lower levels of risk perception and risk aversion (Arrow/Pratt). Results confirm that farmers who are more risk averse are likely to invest less in the future as can be expected from theory. Policies that increase risk in agriculture will have a significant negative effect on future investment in irrigation. What is significant from the results is that irrigation farmers in the Lower Orange River area are highly risk averse (down-side). Results also show that farmers who feel that water licenses are not secure expect to invest less in the future. The latter effect is thus amplified, as farmers appear to be highly risk averse. This has important policy implications, and measures should be taken to improve the perceived security of water licenses. This could be achieved by keeping farmers more informed about the practical implications of the New Water Act (NWA) (Act 36 of1998) and, specifically, water licenses. In the Lower Crocodile River area, almost all the water trades (permanent and rentals) observed in this study were from farmers above the gorge to farmers below the gorge. It is concluded that in the transfer of water some attributes in the purchasing area such as lower production risk (sugar cane) and lower financial risk and better cash flow (bananas and sugar cane) were more important than the expected income per cubic meter of water. Water supply in this area is highly irregular, while sampled farmers were again found to be extremely risk averse especially as far as down-side risk is concerned. The average water price in this area in recent years (2002 to 2003) was between R2000 and R3000 per ha (l ha = 8000 cubic meters). Buyers have large farms and are progressive farmers that purchase (and rent) from many sellers (or lessors). It is concluded that information on water transfers (sale prices and rents) is asymmetrical. Few permanent transfers have taken place in the Crocodile River in recent years. It is concluded that there are reasons why transfers at present are not processed, such as excess demand for water (due to the irregular flow of the Crocodile River, and role players should discuss these reasons and possible solutions before further action is taken. / Thesis (M.Sc.Agric.)- University of KwaZulu-Natal, Pietermaritzburg, 2004.

LLM / Department of Public Law / Historically, there were enormous differences and inequalities with regard to service delivery in South Africa. Traceable to the apartheid period, these inequalities included, inter alia, supply of inadequate and safe drinking water for black communities in particular those at rural areas. Yet, water is an essential necessity for human beings, regardless of race, disability and social status. As a legislative measure to redress the injustices of the apartheid regime, the right to have access to sufficient water is entrenched in Section 27(1) (b) of the South African Constitution of 1996. Also, several legal instruments such as the National Water Act of 1998 and the Water Service Act of 1997 were enacted to uphold the human right to water. The Constitution bestowed the responsibility of water supply and management to the national, provincial and the local government. Despite its inadequacy, the South African government is addressing the water needs of the most impoverished communities by guaranteeing each household a free minimum quantity of potable water of 25 litres per person per day or 6 kiloliters per household per month. Any person who needs more will come under privatisation model which key provisions on the existing law favors. About 38.4% of the population of South Africa who reside in rural communities are poor and mostly affected by inadequate water service delivery in that they cannot afford payment for water in excess of the minimum for which no fees is charged. As a concept, affirmative action is generally used in the context of work places to ensure that qualified marginalized groups have equal opportunities to get a job, but it is not yet investigated in the context of water service delivery. This study assessed laws governing water service delivery and explored how affirmative action can be used as an instrument to ensure the delivery of potable water to rural population in South Africa.