Agriculture figures prominently in Kapuka South's economy due to its rural location. Significant lignitecoal deposits are also located in the vicinity of Kapuka South. The Ashers-Waituna coalfield contains roughly 746 tonnes of recoverable coal. Exploratory work has been undertaken, but commercial mining has not yet taken place.
Education
Kapuka South formerly had a primary school, Kapuka South School. It was open in the first half of the 20th century.
After its closure, the building became the Kapuka South Hall and between 2006 - 2008 became a Clay Target Gun Club.