Legal Institutional Arrangements Pages 1 To 68

Rótann
Olifants River Project
Legal and Institutional Arrangements
Concept Phase
April 2012
“…………we all live down stream……….”

Draft Report – Version 1
Olifants River Project
Legal and Institutional – Concept

Phase
April 2012
Prepared by: Alta van Dyk
Reviewed by: Alta van Dyk
Johannesburg
VERSION CONTROL
Alta van Dyk Environmental cc
Version: Draft 1
Approved by: Alta van Dyk
Signed:
Position: Environmental Specialist
Date: April 2012
The perusal, use, copying or storing of this Report is intended for the use of
the recipient. As such, the information may be legally privileged and the
unauthorized use is strictly prohibited and may be unlawful.
EXECUTIVE SUMMARY
The Lebalelo Water User Association (LWUA) initiated a Concept Phase Study in order
to provide both domestic and industrial water to the Eastern Limb. In summary this
project allowed for different areas of investigation:
 Possible use of purified sewage effluent from three waste water treatment
works – Welgedacht, Daveyton and Anchor (ERWAT owned and operated);
 Use of Acid Mine Drainage (AMD) from the Upper Vaal Water Management
Area – Grootvlei Mine and transfer of this treated water into the upper reaches
of the Olifants River;
 Possible use of contaminated groundwater – Exxaro Zincor Operations for
treatment and transfer into the upper reaches of the Olifants River;
 Possible use of industrial effluent – Sappi Enstra Mill –Blesbokspruit
catchment area for treatment and possible transfer into the upper reaches of
the Olifants River; and
 Use of Acid Mine Drainage from the Witbank Coal fields for treatment and
release into the Olifants River (Landau Colliery, Greenside Colliery, Kleinkopje
Colliery, New Largo Colliery, Kriel Colliery, Isibonelo Colliery, mafube
Colliery, Goedehoop Colliery, South Witbank, Middeelburg and Douglas
Colliery, Xstrata Mines, Matla Colliery, Arnot Colliery, Optimum Mine,
Koornfontein Colliery, Rietspruit Colliery, Klipspruit Colliery and some of the
defunct coal mines located nort-west of Witbank..
The project allows for the investigation of combining some of the treated effluents in the
Upper Vaal System as to release through a single conveyance system into the upper
reaches of the Olifants River.
Benefits associated with the project
The following aspects will be addressed as a direct impact of the implementation of the
project:
 The Olifants River system cannot provide a sustainable yield for future
domestic and mining requirements. Even though the building of the De Hoop
Dam was initiated in aid of the water shortfall in the catchment area, further
development of the water resource is required as to provide in the current and
future requirements;
 Mining companies within the coal fields have over the years proven to have a
significant negative impact on the surface water resources due to the formation
of acid mine drainage and the subsequent decant to the surface water resource.
Apart from site specific decant aspects, mining lease areas are
hydrogeologically inter-connected which results in residual impacts after
closure. Such residual impacts after closure increase post closure treatment
costs and overall financial liability. These aspects prevent mining companies
from obtaining closure. Section 19 and 20 of the National Water Act, allows
the Minister of Water Affairs to direct these mining companies to take certain
steps to prevent pollution. Should these companies not take steps towards the
prevention of pollution, the Minister may undertake such steps and claim the
cost from the specific company responsible for the contamination. Managing
the area in a combined effort through an institution such as a Water User
Association will aid in the overall management of the area towards mine
closures;
 The treatment and transfer of the ERWAT treated sewage effluent in the
Upper Vaal Water Management Area as well as the effluent discharged from
the Sappi Enstra Mill will reduce the ingress of water into the underground
workings of Grootvlei mine and the further contamination of this water and the
risk of decant. Concerns with regards to flooding problems in the
Blesbokspruit RAMSAR wetland area will addressed;
Legislative Requirements
In order to implement the Olifants River Project, various legislative processes have been
considered. These include the following:
 The Constitution of South Africa (No 108 of 1996);
 National Water Act, 1998 (Act 36 of 1998);
 Water Services Act, 19997 (Act 108 of 1997);
 National Environmental Management Act, 1998 (Act 107 of 1998);
 National Environmental Management: Waste Act, 2008 (Act 59 of 2008); and
 Mineral and Petroleum Resources Development Act, (Act 28 of 2002).
Each of these legislative processes and discussed in detail in section 2 of this report.
The essence of the processes and their applicability to the Olifants River Project are
summarised below.
Constitution of South Africa (No 108 of 1996)
Reference is made to Section 152 and Schedule 4 (Part B) of the Constitution which
states that local government only has jurisdiction with regards to water and sanitation
services limited to potable water supply systems and domestic waste water and sewage
disposal systems.
National Water Act, 1998 (Act 36 of 1998)
Section 22 (2) (e) of the National Water Act, 1998 (Act 36 of 1998) states that”
“ a person who uses water as contemplated in subsection (1) must return any seepage,
run-off or water containing waste which emanates from that use to a water resource
from which the water was taken, unless the responsible authority directs otherwise or
the relevant authorisation provides otherwise”.
 This clause forms the essence of decision making within the Olifants River
Project;
 The Lebalelo Water User Association (LWUA) has to negotiate with the
Department of Water Affairs (DWA) towards the implementation of the project;
 These negotiations with ERWAT, Grootvlei Mine, Zincor and the mines in the
coal fields must not be undertaken by the LWUA, but by DWA as the custodian
of the water resource;
 Even though Section 21 licenses will be issued to the various companies involved
the DWA has to issue Licenses to ERWAT, Grootvlei Mine, Zincor and each
mining company in the coal fields in support of the transfer of the water into
another resource which becomes part of the national resource management and
catchment management strategy for the area;
 DWA therefore has to issue a Directive to each company instructing that
particular company to not release the treated water into the water resource
closest to its operations but to transfer the water across a catchment boundary
in support of a particular use such as the use by the LWUA. DWA will through
this directive specify the discharge point;
 DWA therefore will need to invest in the cost associated with the transfer of the
water across the catchment and levy this cost as a catchment management
charge to the users – in this instance the LWUA;
 Water transferred is levied in accordance to the Raw Water Pricing Strategy.
The LWUA will obtain a Section 21(a) abstraction license for a specified volume
which the LWUA will distribute amongst its members. The LWUA will in
return recoup the cost as billed by DWA from its users; and
 The LWUA could consider negotiations with each of these companies with
regards to the capital and operation and maintenance costs associated with the
required pipelines, but this will only add to the overall cost for the WUA.
Section 21 provides for the licensing of water use. The main applicable water uses that
will apply to the project are the following:
 Section 21(a) – Taking of water from the water resource. The LWUA will apply
for the bulk abstraction license from the Flag Boshielo Dam or the Hovercraft
weir in support of the supply;
 Section 21(f) – ERWAT, Grootvlei Mine, Zincor as well as the mining companies
in the coal fields area will need to apply for discharge licenses for each operation
which will need to be supported by the DWA section 22(2)(e) directive;
 Should there be a need for a pipeline as to support the transfer of the treated
water across the catchment boundary, several drainage lines, rivers, streams of
wetland areas may need to be crossed. The DWA require a license application in
support of section 21(c) and (i) of the Act for the impeding or diverting of the flow
in a watercourse or the altering of the bed, banks, course or characteristics of a
watercourse.
The activities as listed above also require an Environmental Impact Assessment (EIA) in
terms of the National Environmental Management Act, 1998. Such EIA will need to be
undertaken by each company in support of the listed activities.
Water Services Act, (Act 108 of 1997)
Water for industrial use is not defined as a municipal service in terms of section 1(xxv)
of the Water Services Act, 1997. Therefore no surcharge can be levied on water for
industrial use. Surcharges may only be levied on the portion of water that is used for
domestic purposes and a reasonable charge should be negotiated.
Institutional Arrangements
The National Water Act, 1998, deals with water in its raw form and allows for two types
of institutions to manage water in the resource, namely the Catchment Management
Agencies (CMAs) and Water User Associations (WUA’s).
Schedule 4 of the Act, specifies the management and planning of water management
institutions and Section 5 provides for a model constitution. These Schedules guided the
establishment of the Lebalelo Water User Association. The proposed powers and
functions for delegation to the WUA were adopted by the LWUA except the management
of water quality aspects which remains the responsibility of DWA.
Taking into account the issuing of Section 22(2)(e) Licenses by DWA in support of the
transfer of the water, DWA may delegate the management of these supply sources to a
Water User Association (WUA). Therefore the possible assigned and delegated functions
to a Water User Association in terms of the National Water Act, 1998 could become the
ideal vehicle for implementing the project. The organization that purchases the water
from the resource could also manage the resource and carry the cost associated with the
management of the resource. Costs incurred are recouped from its members.
In order for the LWUA to manage the discharge of water in favor of its abstraction, the
LWUA area of jurisdiction needs to be amended as well as its specific functions.
Currently the LWUA is not responsible for the management of water quality aspects.
Section 126 of the National Water Act, 1998 allows for servitudes. A servitude is a right
a person has over property belonging to another person. This section allows s person
who is authorised to use water under the Act to claim a servitude over another person’s
land where this is necessary to make that water use effective. A servitude cannot be
claimed unless the claimant is authorised to use water, and if the authorisation is
withdrawn or otherwise terminated, the servitude will lapse. Servitudes are acquired by
agreement between the authorised water user and the relevant land owner, either
according to existing procedures laid down by the Deeds Registries Actor by way of an
agreement which is made an order of court. Therefore, a servitude may be claimed in
favour of the water uses authorised as to give effect to the project (pipeline routes).
Water Tariffs
The water uses on the Olifants River Project as identified for both abstraction and
discharge are water in its raw form from and will be administered in terms of the
National Water Act, 1998, directly to and from the surface water resource. Therefore,
DWA must through its licensing process in terms of Section 40 of the National Water
Act, 1998, provide for Water Use Licenses allowing the ‘Discharge” of treated effluent as
well as the ‘’Taking of water from a water resource’’ as defined under Section 21(a) and
(f) of the Act, and provide Entitlement to Use Water for industrial purposes. The Raw
Water Pricing Strategy will form the basis for the applicable water tariffs. Raw water
use charges will apply to the section 21(a) water use and the waste discharge charge
system will apply to the section 21(f) water use.
The Raw Water Pricing Strategy as applicable:

 Section 21(a) – Taking of water from a water resource – Consumptive Use
Charge, Catchment Management Charge, Return on Asset, Depreciation,
Operation and Maintenance Charge and Water Research Levy
 Section 21(f) – Waste Discharge Charge System (All discharge points)
Assurance in Supply
A detailed investigation was undertaken by Schoeman and Partners as to determine any

possible negative impacts on water use due to the transfer of water across the catchment
boundary from the Upper Vaal Water Management Area (ERWAT WWTW, Grootvlei
Mine and Zincor) as well as from the coal mines in the Middle Olifants Water
Management Area. Concluded from the report the following:
 Irrigation is the biggest water user in the Olifants River Water Management
Area. The area mostly influence by the proposed project is the area located
upstream of the Loskop Dam. The irrigation demand below the Loskop Dam will
remain unchanged;
 Although Government Water Control Areas determine the extent and volume of
water that water users may be entitled to, the use is only lawful if it was
exercised during the two years prior to the promulgation of the National Water
Act, 1998;
 The transfer of water into the Olifants River system will results in the change in
the assurance of supply of the existing lawful water users to 100%. To aid the
assurance of supply aspects, an additional 1 412 m3/a will need to be discharged
into the Koffiespruit and an additional 1 156 m3/a in the Wilge River;
 Unlawful water use remains a concern as effective compliance monitoring and
enforcement is not currently undertaken by DWA. DWA can only conduct
effective compliance monitoring and enforcement is existing lawful water use
was determined. Therefore DWA will have to initiate a section 35 process as to
prevent a greater burden on both the Department and water users.
CONTENTS
1 BACKGROUND AND INTRODUCTION 1
1.1. PROJECT OPTIONS UNDER CONSIDERATION 1

1.2 SCOPE OF WORK 2
2 LEGISLATIVE FRAMEWORK 4
2.1. THE CONSTITUTION AND USE OF WATER 4

2.2 WATER RELATED LEGISLATION 5
2.3 NATIONAL WATER ACT, 1998 (ACT 36 OF 1998) 6
2.3.1 White Paper on a National Water Policy for South Africa 6
2.3.2 National Water Act, 1998 8
2.3.3 Pricing Strategy – Raw Water Use Charges 9
2.3.4 National Water Resource Strategy 10
2.3.5 Institutional Provisions 17
2.4 WATER SERVICES ACT, 1997 22
2.3.1 White Paper on Water Supply and Sanitation Policy (DWEA, 1994) 22
2.3.2 Strategic Framework for Water Services, 2003 (replaced the 1994 White Paper 26
2.3.3 Water Services Authority: 27
2.3.4 Water Services Provider 27
2.3.5 Water Services Act, 1997 29
2.5 NATIONAL ENVIRONMENTAL MANAGEMENT ACT,1998 (ACT 107 OF 1998) 31
2.6 NATIONAL ENVIRONMENTAL MANAGEMENT: WASTE ACT, 2008 (ACT 59 OF 2008) 34
2.7 MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, 2002 36
2.8 PARALLEL APPROVAL PROCESS 36
3 PROJECT LEGAL REQUIREMENTS 39
3.1 PURIFIED SEWAGE EFFLUENT 39

3.1.1 Welgedacht WWTW 39
3.1.2 Daveyton WWTW 41
3.1.3 Anchor WWTW 41
3.1.4 Aspects for consideration 42
3.2 WATER FROM THE GOLD AMD, CONTAMINATED GROUNDWATER AND INDUSTRIAL
EFFLUENT 43
3.3 WATER FROM THE COAL AMD 47
3.4 LEBALELO WATER USER ASSOCIATION 48
4 CONTACT INFORMATION 50
5.1 DEPARTMENT OF WATER AFFAIRS 50

5.1.1 Water Services 50
5.1.2 Water Quality Management 51
5.2 DEPARTMENT OF MINERAL RESOURCES 51
5.3 DEPARTMENT OF ENVIRONMENTAL AFFAIRS 52
5.4 PROVINCIAL DEPARTMENTS 53
5.5 LOCAL AUTHORITIES 53
5 RISK ASSESSMENT 55
6 CONCLUSION 58
7 REFERENCES 59
ANNEXURE A – EXISTING LICENSE DOCUMENTS

ANNEXURE B – REPORT FROM SCHOEMAN AND PARTNERS - IRRIGATION
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1 BACKGROUND AND INTRODUCTION
1.1. PROJECT OPTIONS UNDER CONSIDERATION
The project has been initiated by the Lebalelo Water User Association (LWUA) in
order to secure water for domestic and industrial use in the Eastern Limb.
In summary this projects allowed for different areas of investigation:

 Possible use of purified sewage effluent from three waste water treatment
works – Welgedacht, Daveyton and Anchor;
 Use of Acid Mine Drainage from the Upper Vaal Water Management Area –
Grootvlei Mine;
 Possible use of contaminated groundwater – Exxaro Zincor Operations;
 Possible use of industrial effluent – Sappi Enstra Mill –Blesbokspruit
catchment area;
 Use of Acid Mine Drainage from the Witbank Coal fields
A Concept Pre-Feasibility Study was initiated and four task teams were appointed
in order to investigate the options indicated above. The Legal and Institutional
Task Team was appointed as to support the above teams should they require
information, investigate the legal framework to support the implementation of the
project and investigate possible downstream water users that may be affected by
the project.
This Report forms the Draft Report for the Legal and Institution component of the
project.
The following limitations to this project should be noted:

 The legal background has been compiled without the receipt of the final
completed reports of the other task teams. Therefore there will be a need to
compile and refine the legal requirements once an agreed project scope has
been determined;
 The legal framework is generic and will require agreement and discussion;
 The determination of servitudes for pipeline routes did not form part of this
document as these are unknown;
 There were no discussions with any regulatory authority in support of the
project;
Information taken in support of this study was taken from various sources. These
include amongst others the following:
 Legislative Sources;
o National Water Act, 1998 (Act 36 of 1998);
o National Environmental Management Act, 1998 (Act 107 of 1998);
o National Environmental Management: Waste Act, 2008 (Act 59 of
2008);
o Mineral and Petroleum Resources Development Act, 2002 (Act 28
of 2002);
 Department of Water Affairs – WARMS database;
 Department of Water Affairs – Guideline documents on the establishment
and operation of a Water User Association;
AVD - OLIFANTS RIVER PROJECT -LWUA

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 Department of Water Affairs – Copies of licensing documentation as

requested;
 Previous work undertaken with regards to the eMalahleni Treatment Works
in the Middelburg;
 Guidelines written with regards to the implementation of the National
Water Act, 1998.
Due to various different requirements, this Report has been structured in the
following manner.
 Section 2 provides for the overall legislative framework focussing on the
governing of water in the South African context;
 Section 3 provides details with regards to the project specific and regulatory
approval processes required in support of the project. This section has
been limited due to the availability of the other task team’s specialist
reports;
 Section 4 provides for Institutional aspects as provided for in the National
Water Act;
 Section 5 provides details with regards to the three tiers of government and
whom are the key role-players as well as their contact details;
 Section 6 summarises the risks. This risk assessment excludes the risk
assessment as undertaken by Schoeman and partners;
 Section 7 forms the proposal and costing for the next phase of the project;
 Section 8 contains the conclusions and recommendations
 Section 9 contains all the reference documentation used.
1.2 SCOPE OF WORK
The following scope of work formed part of the work completed:
Objective Scope of Work

 Existing water use
 Obtain existing licensing documentation as far as
license
possible for the identified parties;
documentation was
 Determination of the environmental approvals required;
obtained for Grootvlei
 Determine options available to review / nullify / amend
Mine, Anchor
the historic existing lawful agricultural water use
WWTW, Zincor and
authorisations / permits (granted either in terms of the
the Sappi Enstra Mill
Water Act, 1965 of the old Water Courts);
 Institutional Models
 Assist individuals from other legal areas to ensure that
are discussed in
environmental considerations are incorporated in the
Section 4
various work streams;
 Legal approval
 Conduct review of local government laws and municipal
processes required
by-laws which may affect the projects in the
are discussed in
Municipality(ies); and
Section 2 and 3
Phase 1  Obtain existing documentation on possible institutional
 Existing
models for the implementation of the project;
 Compile the first draft contact list of all possible role- documentation on
institutional models
players that need to form part of the overall
were provided
communication strategy for the project
separately.
 Identify and assess historical and available data (Olifants
River, Steelpoort River, Upper Vaal);
 Agricultural farmer study groups; Separate Report as
 Provincial / Local Government; prepared by
 National Department of Agriculture; Schoeman and
 Department of Water Affairs Partners which is
 Government Water Control Areas appended in
 Gather and capture historical information; Annexure B
Identify and capture all areas on GIS for areas:
 declared as government water control areas in

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terms of sections 28, 59(1)(a) and (b) of the Water

Act 54 of 1956;
 where special Water Acts were applicable;
 where protection orders were given in terms of
sections 35 and 36 of the Irrigation and
Conservation of Water Act of 1912;
 where the Water Court has allocated the normal
flow;
 for which irrigation boards were established;
 where section 9B(1)(C) of the Water Act was made
applicable;
 where general authorisations have been issued;
 existing rights
Obtain copies of the following supporting material

must be obtained and studied:
 all published water use entitlements, restrictions or
prohibitions;
 entitlements, including water court decisions;
 permits or other authorisations;
 water use survey data
 Establish status quo re verification of water use
entitlements by DWA;
 has validation been undertaken;
 how far is DWA with the verification of water use
entitlements and the confirmation of existing lawful
use;
 are there ways to assist with verification for specific
areas or additional actions available to expedite the
process
 Report and proposed actions plans

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2 LEGISLATIVE FRAMEWORK
This section of the report summarises:

 the complete legislative framework,
 provide for aspects with regards to institutional models;
 provides a background with regards to water tariffs; and
 provide for the applications that will be required in terms of the various
legislative processes.
2.1. THE CONSTITUTION AND USE OF WATER
Chapter 2 on the Constitution contains the Bill of Rights, which forms the
cornerstone of the countries democracy. It takes the idea of social justice further
and affirms the democratic values of ‘’human dignity, equality and freedom’’, as
well as ‘’non-racism and non-sexism’’. The Bill of Rights is binding on all laws and
courts, all government departments and organizations, the Government, and all
South Africans. The constitution provides for a limitation of rights if the limitation
is reasonable and justifiable in an open and democratic society based on human
dignity, equality and fairness.
Right to Equality- The right requires inter equitable access by all South Africans
to, and benefit from, the nation’s water resources, and an end to discrimination
with regard to access to water on the base of race, class or gender.
Right to Dignity and Life- The lack of sanitation and water for basic human needs
such as washing, cooking and drinking, for growing crops, and for economic
development impact significantly on both the right to dignify and the right to life.
The Constitution places a duty on the state to make sure that this right is
respected through, amongst other things, equal access to water.
Environmental Rights- It places a responsibility on the Government to ensure that

water pollution is prevented, and that water conservation and sustainable,
justifiable economic and social development is promoted.
Right to Access to Sufficient Water- National Government has to take reasonable

legislative and other measures within its available resources to achieve the
progressive realization of these rights.
The Constitution was used as the basis for new legislation governing water and
water management in South Africa. In 1995, South Arica embarked on a review
process of the water law in order to consolidate the fragmented legislation dealing
with various aspects of water. This review process gave effect to 18 principles
which were capture in the White Paper on a National Water Policy for South
Africa, 1997. After acceptance by parliament the principles and policy contained in
the White Paper, these were used as basis to draft the new legislation.
Section 152 of the Constitution states the following with regards to the duties of
municipalities:
(a) Structure and manage its administration and budgeting and planning
processes to give priority to the basic needs of the community, and to
promote the social and economic development of the community; and

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(b) Participate in national and provincial development programmes.
Section 156 provides for the powers and functions of municipalities and states that
(1) a municipality has executive authority in respect of, and has the right to
administer –
(a) The local government matters as listed in Part B of Schedule 4 and Part B
of Schedule 5; and
(b) Any other matter assigned to it by national or provincial legislation
(2) a municipality may take and administer by-laws for the effective
administration of matters which it has the right to administer;
(3) Subject to section 151(4), a by-law that conflicts with national or provincial
legislation is invalid. If there is a conflict between the by-law and national or
provincial legislation that is inoperative because of a conflict referred to in
section 149, the by-law must be regarded as valid for as long as that
legislation is inoperative.
Schedule 4, Part B of the Constitution states that local government only has
jurisdiction with regards to water and sanitation services limited to potable water
supply systems and domestic waste water and sewage disposal systems.
2.2 WATER RELATED LEGISLATION
The two pieces of legislation that governs the management of water in South
Africa are:
 The Water Services Act, Act 108 of 1997 (WSA)- which is regarded as
offspring legislation from the parent National Water Act, even if it were
promulgated before the National Water Act, and regulates the manner in
which water services must be provided by those responsible, such as
municipalities; and
 The National Water Act, Act 36 of 1998 (NWA)-which deals with water as a
resource found in the natural hydrological cycle, and outlines how this
resource must be managed in its raw form. This implies that water provided
through the Water Services Act has undergone some treatment process to
comply with a certain standard and that such treatment costs were incurred
by a Water Services Provider (potable water).
The applicability of the legislation in context to the Olifants River project is

highlighted in terms of each piece of legislation in order to conclude the overall
legislative requirements in support of the project.
The National Government is the public trustee of the nation’s water resources and
overall leader of the water sector. The National Government acts through the
Minister of Water Affairs. Therefore, the Department of Water Affairs (DWA) will
oversee the activities of all water sector institutions and will regulate water
resources and water services.
DWA will be responsible for water resource planning at the national and
international levels and for decisions relating to inter-catchment transfers and
international allocations. Most water licensing functions will ultimately be
delegated to the CMAs with only licensing of significant strategic or inter-water
management implications will be retained by the Minister and DWA.

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The Minister may in writing delegate a power vested in him or her to:
• An official of the department by name;
• The holder of an office n DWA;
• A CMA;
• A Water User Association;
• A body responsible for international water management;
• A person who fulfils the functions of a water management
institution;
• An advisory committee; or
• A water board
The official, institution, committee or board to whom a power has been delegated,
is responsible for exercising that power, but the Minister stays accountable for the
manner in which the power is exercised.
2.3 NATIONAL WATER ACT, 1998 (ACT 36 OF 1998)
2.3.1 White Paper on a National Water Policy for South Africa
333In November 1996, a White Paper on the fundamental principles of the Water
Law was passed through cabinet. These principles are:
• 1 – Water Law shall be subject to and consistent with the Constitution
while taking cognisance of existing uses and actively promote the values
enshrined in the Bill of Rights;
• 2 – All water (water cycle) is a resource common to all, the use of which
shall be subject to national control. All water shall have a consistent
status in law, irrespective of where it occurs;
• 3 – There shall be no ownership of water but only a right (for
environmental and basic human needs) or an authorisation for its use.
Any authorisation to use water i.t.o the water law shall not be perpetuity;
• 4 – The location of the water resource in relation to land shall not in itself
confer preferential rights to usage. The riparian principle does not apply;
• 5 – Recognises the unity of the water cycle and the interdependence of its
elements, where evaporation, clouds and rainfall are linked to
groundwater, rivers, lakes, wetlands and the sea, and where the basic
hydrological unit is the catchment;
• 6 – The variable, uneven and unpredictable distribution of water in the
water cycle should be acknowledged;
• 7 – The objective of managing the quantity, quality and reliability of the
nation’s water resources is to achieve optimum, long term,
environmentally sustainable social and economic benefit for society from
their use;
• 8 – The water required to ensure that all people have access to sufficient
water shall be reserved;
• 9 – The quantity, quality and reliability of water required to maintain the
ecological functions on which humans depend shall be reserved so that the
human use of water does not individually or cumulatively compromise the
long term sustainability of aquatic and associated ecosystems
• 10 – the water required to meet Basic Human needs referred to and the
needs of the environment shall be identified as “the Reserve” and shall
enjoy priority of use by right. The use of water for all other purposes shall
be subject to authorisation;

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• 11 – International water resources, specifically shared river systems, shall

be managed in a manner that optimises the benefits for all parties in a
spirit of mutual co-operation. Allocations agreed for downstream countries
shall be respected;
• 12 – The national Government is the custodian guided by its duty to
promote the public trust, and is ultimate responsible for, and the authority
over, water resource management, the equitable allocation and usage of
water and transfer of water between catchments and international water
matters
• 13 – National Government shall ensure that the development,
apportionment, management and use of those resources is carried out
using the criteria of public interest, sustainability, equity and efficiency of
use in a manner that reflects its public trust obligations and the value of
water to society while ensuring that basic domestic needs, the
requirements of the environment and international obligations are met;
• 14 – Water resources shall be developed, apportioned and managed in
such a manner as to enable all user sectors to gain equitable access to the
desired quantity, quality and reliability of water;
• 15 – Water quality and quantity are interdependent and shall be managed
in an integrated manner, which is consistent with broader environmental
management approaches;
• 16 – Water quality management options shall include the use of economic
incentives and penalties to reduce pollution; and the possibility of
irretrievable environmental degradation as a result of pollution shall be
prevented;
• 17 – Water resource development and supply activities shall be managed
in a manner which is consistent with the broader national approaches to
environmental management;
• 18 – Many land uses have a significant impact on the water cycle, the
regulation of land use shall, where appropriate, be used as an instrument
to manage water resources within the broader integrated framework of
land use management;
• 19 – Any authorisation to use water shall be given in a timely fashion and
in a manner which is clear, secure and predictable in respect of the
assurance of availability, extent and duration of use. The purpose for
which that water may be used shall not be restricted;
• 20 – The conditions upon which authorisation is granted to use water shall
take into consideration the investment made by the user in developing
infrastructure to be able to use the water;
• 21 – The development and management of water resources shall be carried
out in a manner which limits to an acceptable minimum the danger to life
and property due to natural or manmade disasters;
• 22 – The institutional framework for water management shall as far as
possible be simple, pragmatic and understandable – shall be self driven
and minimise the necessity of State intervention – administration
decisions shall be subject to appeal;
• 23 – Responsibility for the development, apportionment and management
of available water resources shall, where possible and appropriate, be
delegated to a catchment or regional level – enable interested parties to
participate;
• 24 – Beneficiaries of the water management system shall contribute to the
cost of its establishment and maintenance on an equitable basis;

8|P A G E
• 25 – The right to access to basic water (provision of potable water supply

and the removal and disposal of human excreta and waste water) to afford
a healthy environment on an equitable and economically and
environmentally sustainable basis;
• 26 – Water services shall be regulated in a manner which is consistent
with and supportive of the aims and approaches of the broader local
government framework;
• 27 – While the provision of water services is an activity distinct from the
development and management of water resources, water services shall be
provided in a manner consistent with the goals of water resource
management;
• 28 – Where water services are provided in a monopoly situation, the
interests of the individual consumer and the wider public must be
protected and the broad goals of public policy promoted.
2.3.2 National Water Act, 1998
The following are important concepts or definitions of the National Water Act in
relation to the Olifants River Project:
 Water Resource – Water within the hydrological cycle which is treated in an
integrated fashion and is a resource common to all;
 Public Trustee – National Government (DWA), act as public trustee of the
water resource and must establish a national water resource strategy for
the protection, use, development, conservation, management and control of
water resources;
 The Reserve – comprises the quality and quantity of water required to
satisfy basic human needs by securing a basic water supply for people who
are now or will, in the reasonable future, be relying upon, taking water
from, or being supplied from, the relevant water resource and to protect the
aquatic ecosystems in order to ensure ecological sustainable development
and use of the water resource. The concept of the “Reserve” is therefore
designed to give effect to the constitutional guarantee to all South Africans
of right to access to sufficient water for basic human needs. It also gives
practical effect to the environmental rights enshrined in the Constitution as
well as to the countries international obligations in relation to water;
 Water Use – Not limited to the abstraction of water but also includes the
storing of water, disposing of waste, discharging water containing waste,
altering the beds and banks and recreational use of water. All water uses,
apart from reasonable use of water for domestic purposes, small gardening,
animal watering(feedlots), and fire-fighting, requires a form of authorisation
or license under the National Water Act.
The National Water Act provides the Government with the power to regulate the
use, flow and control of all water in the country. As Public Trustee, DWA has to
ensure that water is allocated “equitably” and used “beneficially” in the public
interest, while also promoting environmental values. Trusteeship means the
interest of future generations must be safeguarded, which introduces the
imperative for sustainability in terms of water use.
The Act lays the foundation for regulating water use and forms the basis of the
Water Use Authorisation Registration Management System (WARMS). WARMS
ensures to finance the provision of water resource services by ensuring that all
water use is charged for, and the funding generated in this way will enable DWA

9|P A G E
to manage and develop water resources more effectively. This implies charges for
raw water supplied to users in terms of Section 21 (a) of the Act. The WARMS is a
national information system which simonises water use information at regional or
national level.
Therefore, DWA may:

 Set a pricing strategy;
 This strategy may differ from one geographical area to another, categories of
water users or individual users;
 May implement incentives and penalties;
 Provide financial assistance under certain considerations.
The Minister of DWA has the power to establish and operate government
waterworks such as the De Hoop Dam in the public interest, undertakes the
required Environmental Impact Assessment (EIA) before the construction and
may make available such water from a government waterwork for allocation to
water users. The charges for water from government waterworks may be fixed.
2.3.3 Pricing Strategy – Raw Water Use Charges
 This strategy refers to pricing the use of water from the water resource (raw
water), and not to the pricing of water services;
 There is a cost associated with the ecological management of the catchment,
and this should be paid for by all users of the resource – Catchment
Management Charge;
 Ensures financial sustainability – DWA recoups the capital costs as well as
operational and maintenance and depreciation cost on the supply schemes
from the user – Return on Asset / Rate of Return (ROA), Depreciation
(DEP) and Operation and Maintenance (O & M);
 DWA makes the first tranche of 1st tier water (equivalent to that portion
required to meet basic human needs, defined as 25 litres per capita per
day) available free of charge to water services authorities. This applies to
water abstracted by local government by means of own works as well as
supplied to them from public storage dams such as the De Hoop Dam.
This promotes applicable lifeline tariffs at the 3rd tier as to achieve fair
access to basic services. The cost of raw water for meeting basic human
needs from the source of supply in the areas of the water services
authorities should thus be borne by all economic users within the water
management area and those supplied from to storage dams or system as so
far as the free component is concerned. It is important to note that the
subsidisation of the resource cost of 1st tier water as it travels through to
the 3rd tier) should not be considered as a subsidisation of the distribution
costs of the 3rd tier provider of potable supplies. The 3rd tier cost must be
borne in full by the relevant Water Services Provider. In terms of the
charges levied by DWA for raw water use, there is currently only a
difference between water used for agricultural purposes and water used
for industrial or domestic purposes due to the difference in assurance of
supply;
 Pricing Strategy is applicable to all water uses as defined under Section 21
of the Act – 11 uses;
 Water taken from a dam such as the De Hoop Dam will be costed in terms of
the water abstracted for use from the dam as calculated annually;
 Section 56 of the Act provides for the pricing strategy to include:

10 | P A G E
o For funding water resource management – activities to regulate,

manage and maintain the water resource or catchment;
o For funding water resource development and use of waterworks;
o For achieving the equitable and efficient allocation of water;
 The pricing strategy can only be applied to water management areas or
schemes where annual water use has been registered or licensed – thus
the reason for DWA to license raw water use in terms of Section 40 of the
National Water Act, 1998 – raw water directly to a consumer or to a Water
Services Provider;
 Currently the following end-user sector are levied for 1st tier charges (raw
water) directly to DWA:
o Water Services Authorities;
o Industry Mining and Energy;
o Irrigation;
o Stream flow reduction activities (afforestation);
 Unit costs will be determined per user sector and per scheme:
o Capital cost will be divided in proportion to the long term
estimated average annual sectoral use of allocations, taking into
account the assurance of supply;
o Depreciation will be considered similar to the capital cost;
o Return on asset – as described above to determine the real average
annual return on assets based on 4% of the depreciation cost
allocations per unit sector;
o Direct use – sector specific costs directly to the relevant sector;
o Indirect use – management of the use. Allocated per scheme to
different sectors using an equitable time-based allocation base;
 Water Management Institutions such as the TCTA, which are directed by
the Minister of Water Affairs to implement and fund government water
schemes off-budget, are entitled by the DWA to raise loans to finance the
development of new water resource infrastructure, and should therefore be
able to service these loans through cost recovery. The TCTA will be
incorporated in the National Water Resource Infrastructure Agency
(NWRIA), which will in due course take responsibility for developing and
operation SA national water resource infrastructure;
 In the interim the TCTA may enter into an implementation agreement with
DWA and DWA may thereafter enter into supply agreements with end-
users. Consequently these agreements will be “back-to-back” and serve
the purpose of recording the rights and obligations of the parties in the
implementation, financing and supply of water pertaining to the new
government water work. In these cases the TCTA will levy the Capital
Unit Charge (CUC) onto DWA and DWA will in return levy the CUC onto
end-users. A cession may be signed between parties whereby the CUC
charge is paid directly to the water management institutions. Once the
debt has been repaid, the project will attract all charges applicable to
State funded schemes except for the ROA charges which will be replaced
by the Water Resource Development Charge (WRDC).
2.3.4 National Water Resource Strategy
 The National Water Act is not, however, the only instrument through which
the objectives of the National Water Policy will be achieved. Since water is
essential for all life and human endeavours, there are many other policies
and laws, administered by a number of departments in all spheres of

11 | P A G E
government, which govern activities dependent on water or affect water

resources. The 1994 Water Supply and Sanitation Policy White Paper (now
superseded by the Strategic Framework for Water Services, 2003), and the
Water Services Act, 1997 (Act of 108 of 1997), which deals with the
provision of potable water and sanitation services, are particularly closely
related to the Act;
 It is stated that the Water Services Act, 1997, provides the regulatory
framework for the provision of water services by local authorities, under the
overall oversight of the Minister of Water Affairs;
 The Department, in accordance with the Constitution, is committed to co-
operating with all spheres of government to achieve the national objectives
of equitable and sustainable social and economic development. However,
departments cannot co-operate effectively if the policies and laws they
administer are in conflict with one another. Accordingly section 6(1)(a) of
the National Water Act requires, among other things, that the Department’s
strategies and institutional arrangements for water resource management
are “within the framework of existing relevant Government policy”;
 Alignment of water resources management and water services provision
activities:
o Strategy and Planning: Aligning strategies and planning for water
resources management and the provision of water services,
particularly in respect of the links between the catchment
management strategies required by the National Water Act, 1998,
and the water services development plans required by the Water
Services Act;
o Water use Regulation: Co-ordinating the common regulatory and
audit functions for water resources management and water
services, including monitoring and management compliance with
the conditions of water use;
o Implementation: Promoting partnerships for developing and
managing water resources infrastructure, and implementing
interventions in, for instance, water quality management and
water demand management;
o Institutional support: Sharing capacity for empowering, co-
ordinating and supporting water management and water services
institutions, and transferring functions to them;
o Information Management and communications: Integrating or
linking information systems and technology, and co-ordinating
communication with external stakeholders and partners.
 Section 9 of the Act requires catchment management strategies to take
account of the development plans prepared in terms of the Water Services
Act. All metropolitan and district municipalities, all of which are
designated as water services authorities, and any local municipalities
authorised to fulfil the role of a water services authority, must prepare
water services development plans in terms of the Water Services Act. These
plans form part of the Integrated Development Plans that municipalities
must prepare in terms of the Municipal Systems Act, 2000 (No 32 of 2000);
 A water services development plan will be a responsible authority’s (DWA)
principal source of information for determining water allocations to a
municipality and issuing a license (raw water licensed). The plan’s
requirements must be accounted for in the responsible authority’s
catchment management strategy. Some of the data in water services

12 | P A G E
development plans will be incorporated into the WARMS and will therefore
contribute to national water resources planning;
 Section 6(1)(a)(ii) of the Water Services Act requires the strategies in the
National Water Resource Strategy to support the achievement of
compulsory national standards prescribed under section 9(1) of the Water
Services Act. The Regulations prescribe standards for a range of water
services issues. The main relationship between the regulations and
requirements for water resource management are as follows:
o Basic Sanitation – The design of sanitation facilities must take
into account of the potential for polluting water resources,
especially with regard to groundwater;
o Basic Water Supply – basic human needs are included in the
Reserve described in the National Water Resource Strategy;
o Quality of potable water – the quality of water in river, dams and
groundwater aquifers has a direct impact on the costs incurred by
water services institutions when treating water to prescribed
standards;
o Control of objectionable substances and disposal of grey water –
The Act provides for the establishment of standards for the
discharge of waste or water containing waste into a water resource
by regulation, and provides for the inclusion of these standards in
the conditions attached to licenses and general authorisations;
o Use of effluent – The use of effluent for irrigation or to recharge a
groundwater aquifer are controlled activities under section 37 of
the Act and must be authorised by a responsible authority;
o Quantity and quality of industrial effluent discharged into a
sewerage system – The capacity of sewage effluent treatment
works to meet their license conditions under the Act will influence
the type of effluent the water services institution can accept into
its sewers;
o Water services audit, water and effluent balance analysis and the
determination of water losses; the repair of leaks; measurement or
control of water supplied; pressure in reticulation system; and
reporting of non-compliance: These relate to the requirements of
the water conservation and water demand management strategy
for the domestic sector;
 Section 56 of the National Water Act requires that the pricing strategy for
water use charges supports the establishment of tariffs by water services
authorities. It does not deal with treated water supplied in bulk by
(meaning potable water), for instance, water boards, and distributed to
households via water services authorities, as this is dealt with in the Water
Services Act, 1997. There is, nevertheless, an explicit requirement in the
National Water Act, 1998, to ensure that the pricing strategy supports the
establishment of tariffs for water services in terms of the Water Services
Act, 1997;
 The Constitution provides for three spheres of government – national,
provincial and local – which are “distinctive, inter-dependent and inter-
related”. Whilst each sphere of government is responsible for planning the
activities for which it is constitutionally mandated, the activities and the
plans and strategies that guide them must be aligned with one another and
with those of other spheres of government. This alignment is achieved
within the inter-governmental planning system, in which there is a mutual
co-operation and sharing of information. In particular, provincial and local

13 | P A G E
governments must have the opportunity to participate in the development of

national plans and strategies, and in making decisions that will affect their
areas of jurisdiction;
 The DWA has developed and owns, operates and maintains a number of
water resources schemes comprising dams and related infrastructure. The
responsibility for operating and maintaining schemes that are of wider
importance because they transfer water across national boundaries or
between water management areas, serve multiple user sectors or large
geographical areas, comprise several interconnected catchments, or serve a
strategic purpose, such as the generation of electricity for the national grid,
will not be transferred to a local level. These schemes are regarded as
national water resources infrastructure. The National Water Act empowers
the Minister to direct the TCTA to undertake specific activities related to its
core business of financing major water infrastructure. The TCTA is
regarded as an international water management body in terms of the
National Water Act.
Concluded from the above the National Water Act, 1998, deals with water in the
hydrological cycle and outlines how this resource is managed in its raw form. It
allows DWA as the custodian of this resource to manage this resource on a
catchment basis and allocate use to end-users in terms of an allocation plan.
Therefore DWA, may as per this legislation license water use as raw water
directly to end-users of whom the users include the Local Municipalities. Users of
raw water are billed in terms of the WARMS System based in the National Raw
Water Pricing Strategy
The water uses on the Olifants River Project as identified for both abstraction and
discharge are water in its raw form from and will be administered in terms of the
National Water Act, 1998, directly to and from the surface water resource.
Therefore, DWA must through its licensing process in terms of Section 40 of the
National Water Act, 1998, provide for Water Use Licenses allowing the ‘Discharge
of treated effluent as well as the ‘’Taking of water from a water resource’’ as
defined under Section 21(a) and (f) of the Act, and provide Entitlement to Use
Water for industrial purposes. The Raw Water Pricing Strategy will form the
basis for the applicable water tariffs. Raw water use charges will apply to the
section 21(a) water use and the waste discharge charge system will apply to the
section 21(f) water use.
A user whom has paid the raw water use tariff in terms of the National Raw
Water Pricing Strategy is billed directly by DWA through the WARMS system. No
moneys are in terms of this billing system transferred to Local Government. Local
Government pays their own account in terms of their raw water allocation to
DWA. This implies that there are no double accounting taking place between the
National Water Act, 1998 and the Water Services Act, 1997 and a user only pays
once for his actual use.
A person who wishes to use, or who uses water in a manner that is not a Schedule
1 use, not covered under a General Authorisation, or in a manner that is not
regarded or declared as, an existing lawful use, may only use that water under the
authority of a licence (Section 4).
The National Water Act makes provision for two types of applications for water
use licences, namely individual applications and compulsory applications. The Act

14 | P A G E
also provides that the responsible authority may require an assessment by the
applicant of the likely effect of the proposed licence on the resource quality, and
that such assessment be subject to the Environmental Impact Assessment
regulations promulgated under the National Environmental Management Act.
The process of applying for an Integrated Water Use Licence under the National
Water Act, Act 36 of 1998, is based on the following principles:
 The process follows a strong procedural approach;

 Application can be made for multiple water uses through the
execution of a single process, resulting in the issuing of a single
licence for these water uses;
 Existing water pollution or impact on surface or groundwater
will not be legalised and a user will be expected to mitigate the
situation. Such mitigatory actions will form part of a water use
license application.
 Decision-making by the regulatory authority is based on a set of
rules or criteria and makes provision for the integrated
assessment of all potential impacts posed by proposed, existing
and historical actions;
 An open and participatory approach, where the public are
involved in decision-making. Information obtained during the
assessment must be made available to the public in an
understandable manner. In a parallel approval process, the
public participation is undertaken as part of the EIA process;
 The Integrated License Application must be supported by an
Integrated Water and Waste Management Plan (IWWMP);
 A staged procedure that increases in complexity as the process
progresses, in order to ensure cost effectiveness, with each stage
involving some type of assessment by the applicant, and a
decision by the DWA; and
 Harmonisation of the Integrated Water Use License Application
(IWULA) process with any Environmental Impact Assessment
processes.
The National Water Act, 1998 identifies 11 consumptive and non-consumptive

water uses, which must be authorised under a tiered authorisation system, which
include Scheduled uses, General Authorisations, or Licences. It allows for the
“Reserve” and provides for public consultation processes in the establishment of
strategies and making decisions, and guarantees the right to appeal against such
decisions.
Section 22 (2) (e) states that a person who uses water as contemplated in
subsection (1) must return any seepage, run-off or water containing waste which
emanates from that use to a water resource from which the water was taken,
unless the responsible authority directs otherwise or the relevant authorisation
provides otherwise. This clause forms the essence of decision making within the
Olifants River Project. Even though Section 21 licenses will be issued to the
various companies involved the Department of Water Affairs has to issue a
License in support of the transfer of the water into another resource which
becomes part of the national resource management strategy. DWA therefore
issues a Directive to each company instructing that particular company to not
release the water into the water resource but to transfer the water across a

15 | P A G E
catchment boundary in support of the use by the Lebalelo Water user Association.
Therefore this negotiation with ERWAT, Grootvlei Mine, Zincor and the mines in
the coal fields is not undertaken by the Lebalelo Water Users Association, but by
DWA. Water transferred is then levied to the LWUA in accordance to the Raw
Water Pricing Strategy. The LWUA will in return recoup the cost from its users
for the water used.
Section 22 (3) states that a responsible authority may dispense with the
requirement for a license for water use if it is satisfied that the purpose of this Act
will be met by the grant of a license, permit or other authorisation under any
other law;
Section 22(4) states that in the interest of co-operative governance, a responsible

authority may promote arrangements with other organs of state to combine their
respective license requirements into a single license requirement
Section 27 of the National Water Act specifies some factors regarding water use
authorisation that must be taken into consideration. These include:
• The efficient and beneficial use of water in the public interest;
• The socio-economic impact of the decision whether or not to
issue a licence;
• Alignment with the catchment management strategy;
• The impact of the water use and source and resource directed
measures; and
• Investments made by the applicant in respect of the water use in
question.
The following water uses generally have to be licensed, in accordance with Section
21 of the Water Act. The uses applicable to the overall project are highlighted
below. Not all of these will be the responsibility of the Lebalelo Water User
Association (LWUA) as some of the uses apply to either the municipal sewage
works or the mining companies.
 S21(a) Taking water from a water resource;

 S21(b) Storing water;
 S21(c) Impeding or diverting the flow of water in a watercourse;
 S21(d) Engaging in a stream flow reduction activity;
 S21(e) Engaging in a controlled activity;
 S21(f) Discharging waste or water containing waste into a water
resource through a pipe, canal, sewer or other conduit
 S21(g) Disposing of waste in a manner which may detrimentally
impact on a water resource;
 S21(h) Disposing in any manner of water which contains waste
from, or which has been heated in any industrial or power
generation process;
 S21(i) Altering the bed, banks, course or characteristics of a
watercourse;
 S21(j) Removing, discharging or disposing of water found
underground if it is necessary for the efficient
continuation of an activity or for the safety of people;
 S21 (k) Using water for recreational purposes.

16 | P A G E
Section 4(4) of the NWA replaces the water rights under old legislation, with
entitlements under the new legislation. However, existing water uses were
allowed to continue as “existing lawful water use”. The following provisions of the
NWA define and limit the extent of this entitlement:
 Section 32 defines existing lawful use as a water use that was lawfully
undertaken during a two-year period immediately before the date of
commencement of the Act.
 Section 33 allows for the declaration of any water use not considered under
Section 32, as an existing lawful use.
 Section 34 provides the authority to continue with an existing lawful use
until its replacement by a licence.
 Section 35 outlines provisions for persons claiming an existing lawful use
entitlement, to apply for the verification of the extent of existing lawful use.
Water users may not continue to use the water if they do not apply for
verification when requested to do so, or if the verification application has
been refused.
 The responsible authority can also conduct its own investigation into the
veracity of the claims made.
Section 22 (1) of the Act states that a person may only use water –
(a) Without a license –
(i) If that water is permissible under Schedule 1:
(ii) If that water is permissible as a continuation of an
existing lawful use; or
(iii) If that water use if permissible in terms of a general
authorisation issued under section 39;
(b) If the water use is authorised by a license under this Act; or
(c) If the responsible authority has dispensed with a license requirement
under subsection (3)
For purposes of this study the important factor to consider is 22(1)(a)(iii) namely
“if that use is a continuation of an existing lawful water use”. The term “existing
lawful use” is defined under section 32 of the NWA which states:
“32. (1) An existing lawful water use means a water use

(a) which has taken place at any time during a period of two years
immediately before the date of commencement of this Act and which –
(i) was authorised by or under any law which was in force immediately before
the date of commencement of this Act;
(ii) is a stream flow reduction activity contemplated in section 36(1); or
(iii) is a controlled activity contemplated in section 37(1).
(b) which has been declared an existing lawful water use under section 33.”
Section 34 of the NWA further states that:
“34. (1) A person, or that person's successor in title, may continue with an existing
lawful water use, subject to -
(a) any existing conditions or obligations attaching to that use;
(b) its replacement by a licence in terms of this Act; or
(c) any other limitation or prohibition by or under this Act.”

17 | P A G E
An existing lawful water use is therefore a water use that took place lawfully in
the two year period prior to the commencement of the NWA.
Section 32(1)(b) also states that an existing lawful use means a water use which
has been declared an existing lawful water use under section 33. Policy proposals
regarding the treatment of scheduled irrigation allocations on Government and
Irrigation Board schemes as existing lawful water use in terms of section 33 of the
NWA, 1998, were approved by the Minister on 10 May 1999. Under this policy, all
lawful scheduling in terms of sections 63 and 88 of the Water Act (1956) on
Government and Irrigation Board schemes, which has been annually paid for
before 1 January 1999, was declared as existing lawful use in terms of section 33
of the NWA, 1998. The Policy also stated that all unexercised water uses must be
exercised within three years after the promulgation of the Act to be considered as
existing lawful water use.
In Circular 18 of 2001 the Director General stated that “all lawful scheduling it
terms of section 63 and 88 of the WA for which all due water use rates and charges
were paid on 30 September 1998, should be treated as existing lawful water uses
in terms of section 33 of the WA. As there is no authority for the Minister to
attach conditions to a declaration of an existing lawful water use, the three-year
period to develop unutilised water allocations as granted in terms of Circular 59 of
1999 is hereby withdrawn. These unutilised rights can be treated as existing
lawful water use until compulsory licensing is required.”
Section 126 of the Act allows for servitudes. A servitude is a right a person has
over property belonging to another person. This section allows s person who is
authorised to use water under the Act to claim a servitude over another person’s
land where this is necessary to make that water use effective. A servitude cannot
be claimed unless the claimant is authorised to use water, and if the authorisation
is withdrawn or otherwise terminated, the servitude will lapse. Servitudes are
acquired by agreement between the authorised water user and the relevant land
owner, either according to existing procedures laid down by the Deeds Registries
Actor by way of an agreement which is made an order of court. Therefore, a
servitude may be claimed in favour of the water uses authorised as to give effect to
the project (pipeline routes).
2.3.5 Institutional Provisions
Catchment Management Agencies (CMA’s)
The Minister of DWA may establish for each water management area a CMA.
CMAs are organs of state, but do not belong to a sphere of government.
Some or all of the functions of DWA relating to water resource development on a

regional or catchment basis will gradually be transferred to these agencies,
including some of the government waterworks under the management and control
of DWA.
CMAs will ultimately be responsible for water resource planning at the catchment
level and most water resource planning activities in these areas, such as the
licensing and monitoring of water uses, collecting water use charges, monitoring

18 | P A G E
the quality of the water resource and overseeing land-use activities as this affects
water management.
The CMA must establish a catchment management strategy for the protection,
use, development, conservation, management and control of water resources
within its water management area by notice in the Government Gazette. This
strategy may only be established with the written consent of the Minister. A
catchment management strategy must:
 Set out the strategies, objectives, plans, guidelines and procedures of
the CMA for the protection, use, development, conservation,
management and control of water resources within its water
management area;
 Contain water allocation plans containing principles for allocating
water; and
 Set out the institutions to be established.
The strategy must enable the public to participate in managing the water
resource. A catchment management strategy should not be in conflict with the
National Water Resource Strategy and must:
 Take note of any relevant national and regional plans;
 Take into account the class and water resource quality objectives, the
requirements of the Reserve and, where applicable, international
obligations; and
 Take into account the needs and expectations of existing and potential
water users.
A CMA, if this power has been assigned to the agency, or else the Minister, may
make rules to regulate water use. The rules may relate to –
 The times when water may be used;
 The places where the water may be used;
 The manner in which the water may be used; and
 The waterworks through which water may be used.
Before making a specific rule, the CMA, or the Minister, must consider all
applicable conditions for the provision of services and by-laws made under the
Water Services Act, Act 108 of 1997 as made by the water services institutions
having jurisdiction in the area in question.
The CMA, if this power has been assigned to the agency, may require in writing
that a water user –
 Install a recording or monitoring device to monitor the storing,
abstraction and use of water;
 Establish links with any monitoring or management system to
monitor storing, abstraction and use of water; and
 Keeps records on the storing, abstraction and use of water and submit
the records to the CMA or Minister, as the case may be.
Water User Associations
The National Water Act (NWA) makes provision for a Water User Association
(WUA) to be established by the Minister. A WUA is defined in the NWA as a
water management institution, but with more restricted objectives that those of a
catchment management agency, both in scope and geographical extent. A WUA is
in effect a co-operative association of individual water users who wish to

19 | P A G E
undertake water related activities at a local level for their mutual benefit. The
WUA has to operate in terms of a formal constitution and are expected to be
financially self-supporting from water use charges determined and made in terms
of the pricing strategy, and payable by members.
WUAs will play an increasing role as a statutory water management institution

(WMI) and possibly act as implementation agents for local management of water
resources (delegated functions) on behalf of the CMAs, whose establishment is
imminent. This provides the opportunity for WUAs to undertake water resources
management functions on behalf of the CMA and be compensated accordingly.
However, this can only materialise if WUAs demonstrate that they have fulfilled
their primary functions. Certain delegations could have the effect that the power
to prevent/stop unlawful water uses in the area of jurisdiction rests with the
WUA. As water in most areas is scarce, these delegations could be useful to ensure
that existing authorizations are protected. Operation and maintenance of
infrastructure of a government water scheme could be transferred to a WUA.
Section 93(1) of the Act provides that the model constitution contained in Schedule
5 may be used as a basis for drawing up and proposing a constitution for a
proposed water user association.
The principle functions to be performed by the Association in terms of its area of

operation are:
 To prevent water from any water resource being wasted;
 To protect water resources and waterworks;
 To prevent any unlawful water use;
 To remove or arrange to remove any obstruction unlawfully placed in a
watercourse or waterwork;
 To prevent any unlawful act likely to reduce the quality of water in any water
resource;
 To exercise general supervision over water resources and waterworks;
 To regulate the flow of any watercourse or waterwork by –
- clearing its channel;
- reducing the risk of damage to the land in the event of floods;
- changing a watercourse back to its previous course where it has
been altered through natural causes.
 To investigate and record –
- the quantity of water at different levels of flow in a watercourse or
waterwork;
- the times when; and
- the places where water may be used by any person entitled to use
water from a water resource or waterwork.
 To construct, purchase or otherwise acquire, control, operate and maintain
waterworks considered to be necessary for –
- draining land; and
- supplying water to land for irrigation or other purposes.
 To supervise and regulate the distribution and use of water from a water
resource according to the relevant water use entitlements, by erecting and
maintaining approved devices, or requiring members to erect and maintain
such devices at their own expense, for –
- measuring and dividing; or
- controlling the diversion of the flow of water.

20 | P A G E
 To suspend or reduce the distribution of water from a waterwork and/or water

resource under its control in so far as it is needed for the execution of any of
the functions or for reasons required for the proper operation and protection of
the waterwork or resource.
The following is a list of powers and functions referred to in the National Water
Act, 1998 which could, on application, possibly be considered for delegation to
Water User Associations which previously functioned as Irrigation Boards,
Subterranean Water Control Boards or Water Boards established for animal
watering in respect of their areas of operation only:
(a) Section 19 (3): To direct a person who fails to take the measures required
under Section 19 (1) to –
(i) commence taking specific measures before a given date:
(ii) diligently continue with those measures; and
(iii) complete them before a given date.
(b) Section 19(4): To take the measures the water user association considers
necessary to remedy the situation in the event of a person failing to
comply, or complies inadequately, with a directive under section 19 (3).
(c) Section 19 (5): Subject to section 19 (6), to recover jointly and severally
from the persons mentioned in section 19 (5) all costs incurred as a result
of it acting under section 19 (4).
(d) Section 19 (6): In respect of the recovery of costs under section 19 (5) to
claim from any other person who, in the opinion of the water user
association, benefited from the measures undertaken under section 19 (4),
to the extent of such benefit.
(e) Section 19 (8): In the event of more than one person being liable in terms
of section 19 (5), to apportion liability if requested by any of those persons
to do so, and after giving the others an opportunity to be heard.
(f) Section 20 (4) (d): In the event of an emergency incident, to direct the
responsible person to take such measures as the water user association
may require.
(g) Section 20 (6): To take the measures the water user association considers
necessary to–
(i) contain and minimize the effects of an incident;
(ii) undertake clean - up procedures; and
(iii) remedy the effects of the incident,
if the responsible person fails to comply or inadequately complies with a
directive or if it is not possible to give the directive to the responsible
person timeously.
(h) Section 20 (7): To recover all reasonable costs incurred by the water user
association from every responsible person jointly and severally.
(i) Section 20 (9): In the event of more than one person being liable in terms
of section 20 (7), to apportion liability if requested by any of those persons
to do so, and after giving the others an opportunity to be heard.
(j) Section 53 (1): To, by notice in writing to a person who contravenes-
(a) any provision of Chapter 4 of the Act;
(b) a requirement set or directive given by the responsible authority
under Chapter 4 of the Act; or
(c) a condition which applies to any authority to use water,
direct that person, or the owner of the property in relation to which the
contravention occurs, to take any action specified in the notice to rectify
the contravention.
(k) Section 53 (2): To-
(i) carry out any works and take any other action necessary to rectify the
contravention and recover its reasonable costs from the person on
whom the notice was served; or

21 | P A G E
(ii) apply to a competent court for appropriate relief,

if the action referred to in section 53 (1) is not taken within the specified
time.
(l) Section 54 (1): Subject to section 54 (3) and (4) to, by notice to any person
entitled to use water under the Act, suspend or withdraw the entitlement
if the person fails-
(i) to comply with any condition of the entitlement;
(ii) to comply with the Act; or
(iii) to pay a charge which is payable in terms of Chapter 5.
(m) Section 109: To operate or control government waterworks.
(n) Section 113 (2): To-
(i) control or prohibit access to a government waterwork; and
(ii) subject to the Act, make reasonable charges for
- the use of;
- entry into; and
- the use of any water surface or land associated with,
any government waterwork for recreational purposes.
(o) Schedule 3
Item 2: A water user association may-
(a) manage and monitor permitted water use;
(b) conserve and protect water resources and resource quality (The
LWUA did not take on this function);
(c) subject to the provisions of the Act, develop and operate a
waterwork in furtherance of its functions;
(d) do anything necessary to implement catchment management
strategies; and
(e) by notice to a person taking water and after having given that
person a reasonable opportunity to be heard, limit the taking of water in
terms of Schedule 1.
Item 3: Subject to item 3(2), (5) and (6) a water user association may make rules to
regulate water use.
Item A water user association may require in writing that a water user-
4(1): (i) install a recording or monitoring device to monitor storing,
abstraction or use of water;
(ii) establish links with any monitoring or management system to
monitor storing, abstraction and use of water; and keep records on
the storing, abstraction and use of water and submit the records to
the water user association.
Item 4(2): A water user association may undertake the installation or
establishment of links referred to in item 4.1 and recover any
reasonable costs from that water user if the water user fails to comply
with a requirement in respect of item 4.1.
Item 5(1): To, by written notice, require the owner or person in control of a
waterwork within its area or operation to collect and submit
particular information within a specified period to enable the water
user association to determine whether that waterwork is constructed,
maintained and operated in accordance with the Act.
Item 5(2): To, subject to item 5(3), direct the owner or person in control of a
waterwork situated within its area of operation, at the owner’s own
cost and within a specified period, to -
(i) undertake specific alterations to the waterwork;
(ii) install a specific device; or
(iii) demolish, remove or alter the waterwork or render it
inoperable,
in a manner specified in the directive.
Item 5(4): If the owner fails to comply with a directive, to-
(i) undertake the alterations;
(ii) install the device; or

22 | P A G E
(iii) demolish, remove or alter the waterwork inoperable,

and recover any reasonable costs from the person to whom the
directive was issued.
Item 6(1): In the event of a water shortage within its area of operation, and
subject to items 6(2) and (3) of Schedule 3, to by notice in the Gazette or by written
notice to each of the owners in the area who are likely to be affected –
(i) limit or prohibit the use of water;
(ii) require any person to release stored water under that persons
control;
(iii) prohibit the use of any waterwork; and
(iv) require specified water conservation measures to be carried
out.
Item 6(4): To –
(i) modify, or require the owner of the waterwork to modify the
waterwork so that it cannot be used to take more water than
that allowed for in the notice; or
(ii) remove the waterwork or require the owner to remove the
waterwork if the notice contains a prohibition on the use of
that waterwork, if the owner or person in control of a
waterwork contravenes a notice under item 6 (1) of Schedule
3.
Item 6(5): To recover from the owner any reasonable costs incurred by it in acting
under Item 6(4).
2.4 WATER SERVICES ACT, 1997
2.3.1 White Paper on Water Supply and Sanitation Policy (DWEA, 1994)
In November 1994, the White Paper on Water Supply and Sanitation Policy was
passed through cabinet. The following key components are applicable:
 The Department of Water Affairs (DWA) has the national responsibility of
ensuring that both the needs of people and of the economy which sustains
them are effectively met. -Therefore the provision of water supply and
sanitation services cannot be separated from the effective management of
water resources from other economic purposes-meeting the objectives of the
Reconstruction Development Programme(RDP);
 It was widely agreed that service provision should be implemented at local
level wherever possible and address inequity in the allocation of water
resources and inequity in water supply development.
 The development of effective delivery mechanisms must contribute to the
RDP principle as to prevent conflict. This-includes the provision of
infrastructure for services. Services must be provided to ensure that it
meets people’s basic need but also contribute to the growth of the economy.
Some key principles applicable adopted include:

 Development should be demand driven and community based.- Decision
making and control will be devolved as far as possible to accountable local
structures;
 Basic services are a human right- a right to a level of service adequate to
provide a healthy environment. This does not imply that a person or
community can demand services at the expense of others;
 Water has economic value-the way in which water and sanitation services
are provides must reflect the growing scarcity of good quality water in a

23 | P A G E
manner which reflects their values and does not undermine long term
sustainability and economic growth;
 The user pays- this is the central principle to ensure sustainable and
equitable development, as well as efficient and effective management;
 Integrated development- water and sanitation development are not possible
in isolation from development in other sectors. Co-ordination is necessary
with all tiers of government and other involved parties and maximum direct
and indirect benefit must be derived from development;
The policy of DWA is to ensure that all communities have access to basic services
and to provide the support that they need to achieve them. This does not imply
that the provision of these is necessarily the direct responsibility of DWA. What is
required is a framework within which responsibilities and lines of support are
clear. This institutional framework will involve provincial and local governments
as well as other interested parties such as the private sector and non-
governmental organization.
The Constitution of the Republic of South Africa of 1996 (Constitution) has created
three spheres of government that are independent and interrelated - National,
Provincial and Local government. Municipalities are no longer purely
implementation arms for provincial government, but are a distinct sphere of
government with their own constitutionally mandated powers and responsibilities.
National Government has to this effect, set the following goals:

 The provision of services in the long term to consumers should be the
function of local government supported by provincial governments.
 Where necessary and appropriate, a second tier institution (Water Boards)
will provide bulk or regional water supplies to local authorities under the
National Water Act (36/1998) because their areas of operation may cover
more than one Province and allows DWA to intervene should it be required;
 In the medium term DWA supports local government through institutional
development at local level as well as to provide financial and technical
assistance for the physical development of water supply and sanitation
services. DWA is responsible to undertake water resource management on a
catchment basis.
The Constitution vests executive and legislative authority of a municipality in its

municipal council. Councils are obliged to ensure the sustainable delivery of
services. The Constitution obliges a municipality to ensure the delivery of services.
The Constitution is neutral with respect to the method of services delivery that
municipal councils choose. It does not require a preference for public sector
delivery, nor a preference for alternative methods of such delivery. Municipal
councils have:
 The authority and responsibility to administer those municipal services as
stated in the Constitution; and
 The power to adopt municipal bylaws for regulating municipal services
except where such bylaw conflicts with national or provincial legislation.
In terms of the Constitution (108/1998), Local Government must ‘’…..make

provision for access by all persons residing within its area of jurisdiction to water,
sanitation…providing that such services and amenities are rendered in an
environmentally sustainable manner and are financially and physically
practicable’’

24 | P A G E
The provinces are responsible for local government matters and thus share the
responsibility for assuring service provision, specifically through the promotion of
effective local government. Provincial legislation can expand the scope of a
council’s responsibility for ensuring service delivery by delegating to it any
services listed as a provincial responsibility. A province must delegate
responsibility for such services to a municipal council if the council has the
capacity to administer the service, if the service would be more effectively
administered locally, and if the municipality agrees to the delegation.
The Constitution requires provincial governments, through legislative and other

means, to;
 Provide for’’…the monitoring and support of local government…’’ and
 Promote ‘’…the development of local government capacity to enable
municipalities to perform their functions and manage their own affairs’’
The Constitution empowers provincial government to intervene in municipal

affairs when ‘’…a municipality cannot or does not fulfil an executive obligation in
terms of legislation…’’ in terms of the Constitution, municipalities have an
‘’executive obligation’’ to deliver the municipal services as described in the
constitution. The detailed requirements of this executive obligation are sometimes
spelled out in terms of legislation, such as the Water Services Act.
Provincial Water Liaison Committees are established to ensure effective

communication and liaison between DWA and the provinces and allows DWA a
body to intervene in the affairs of a province when the province fails to fulfil an
executive function in accordance with applicable legislation of the Constitution. In
effect, this means that the national executive can direct a province to intervene in
the affairs of a municipality, or intervene on the province’s behalf, if the province
fails to act.
A municipality may enter into Municipal Service Partnership, which are intended
to be a means of providing councils with greater flexibility for addressing service
delivery within their municipality. These Municipal Service Partnership are not
intended to be a substitute for traditional methods of direct service delivery or as
an alternative to the on-going efforts of many councils to improve the efficiency
and accountability of public-sector municipal service delivery by council itself.
Municipal service Partnerships may include:

 Services Contracts - where a contractor receives a fee from the council to
manage a particular aspect of a municipal service;
 Management Contracts - the contractor is responsible for the overall
management of all aspects of a municipal service, but without the
responsibility to finance the operating, maintenance, repair, or capital costs
of the service;
 Lease - the contractor is responsible for the overall management of a
municipal service, and the council’s operating assets are leased to the
contractor;
 Build/Operate/Transfer (BOT) - the contractor undertakes to design build,
manage, operate, maintain, and repair, as its own expense, a facility to be
used for the delivery of municipal service. The council became the owner of
the facility as soon as it is completed. The council pay the contractor a fee

25 | P A G E
for the services provided, leaving responsibility for tariff collection with the
council;
 Concession -the contractor undertakes the management, operation, repair,
maintenance, replacement, design, construction, and financing of a
municipal service facility or system. The contractor also assumes
responsibility for managing, operating, repairing, and maintenance of
related existing facilities and collects and retains all consumer tariffs,
assumes the collection risk, and pays the council a concession fee.
Municipalities have the power through the Local Government Transitional Act,
Act 209 of 1993, or under relevant provincial proclamations and ordinance, to
enter into these Municipal Service Partnership contracts of all kinds. There
appears to be no limitation imposed by the Constitution or legislation on the
duration of municipal contracts. The Water Services Act requires that contracts
for the provision of water services be of limited duration, without specifying any
limit. Normally the extent of this contact is determined by the extent to which the
service provider is required to invest its own funds in the expansion or upgrade of
infrastructure and recoup its investment over a number of years.
Provincial legislation applicable to the provinces sets forth the expressed

authority of municipalities to determine tariffs for municipal services. The
provincial legislation authorizes tariffs that differentiate among various classes of
users of property, on such grounds as the municipal council deems reasonable. The
provincial ordinances describe the procedure for tariff-setting, including a
requirement that the tariff be adopted by a special resolution of the council and
that notice of the tariff be published in the provincial gazette and in a newspaper.
The provincial ordinance also specifies the procedures for objecting to a tariff
determination which vary according to the category of the municipality. The
adjudication by a municipality of an objection to a tariff is an administrative
decision which is subject to Constitutional and common law requirements of
administrative justice.
The Water Services Act authorizes the Minister of Water Affairs to set ‘’norms and
standards’’ for water service tariffs-this does not imply raw water tariff as these
are set by DWA. These norms and standards must take into account a number of
factors, including social equity, financial sustainability, cost recovery, and return
on investment capital. The Water Services Act forbids any water services
institution from charging tariffs that differ substantially from those norms and
standards, and requires councils to adopt by-laws setting forth the determination
and structure of tariffs for water services in accordance with national norms and
standards. In addition, these norms and standards may:
 Differentiate among various user categories, levels and types of services,
and geographical area;
 Place limitations of the profit(in the case of a private water services
provider) or surplus (in case of a public water services provider) that may be
generated from water services;
 Restrict the use of tariff income.
The role that Private sector can play in the RDP programme was identified as
follows:
 Capital Investment – As designers of systems, contractors and suppliers of
goods and services has significantly gained from business in the provision
of services;

26 | P A G E
 Operation and Maintenance – may include short term management

contracts to complete privatisation of full supply systems in which the
concession holder owns the infrastructure and is responsible for the
financing of expansions;
 Training and capacity building and organisation development – Sharing of
experience and knowledge;
 Financing and commercial services – the use of market finance to
complement government grants and user charges in the provision of
services.
2.3.2 Strategic Framework for Water Services, 2003 (replaced the 1994 White
Paper
This strategic framework, approved by Cabinet on 17 September 2003, sets out a

comprehensive approach with respect to the provision of water services in South
Africa, ranging from small community water supply and sanitation schemes in
remote rural areas to large regional schemes supplying water and wastewater
services to people and industries in large urban areas. This aims to:
 Ensure access of the poor to adequate, affordable and sustainable levels of
defined basic water supply and sanitation services (the first step up the
ladder). Stepping up the services ladder by providing higher levels of service
(for example, a yard tap providing more than 50 litres per person per day);
 Whilst the emphasis during the past years was on delivery, it is now timely
to place greater emphasis on sustainability of the resource (through
conservation and demand management), and of the infrastructure and the
institutions responsible for providing the services (by ensuring financial
viability).
Water services authorities are responsible for securing from DWEA (or CMAs
where established and where this function is delegated) licences to abstract water
(raw water) from, and to discharge wastewater to, the water resource (section 21
(a) and (f) water uses in terms of the NWA).
 Water service providers are the organisations that assume operational

responsibility for providing water and/or sanitation services. (where water
services authorities undertake any of these services themselves, they are a
water services provider);
 Where water services providers purchase water from, sell water to, or
accept wastewater from, another institution, this must be done in terms od
a contract – Contracts for bulk services;
 Where water services providers purchase raw water, this must be done in
terms of a contract – Water resource supply contracts.
A key characteristic of the institutional vision is that the precise institutional form
of water services provision is not specified but rather is flexible with respect to
both the scale of provision and the type of services provider. With the respect to
the scale of the provision of services, a water services provider could serve one
small rural community, one or more towns, a large metropolitan area or a whole
region. With respect to the type of water services provider, a water services
provider could be a municipality, a public utility (owned by local and /or national
government), a community-based organisation or a private organisation.

27 | P A G E
The private sector has a role to pay in assisting local governments and other
water service institutions in the water services sector
2.3.3 Water Services Authority:
 A water services authority is any municipality that has the executive

authority to provide water services within its area of jurisdiction in terms of
the Municipal Structures Act 188 of 1998 or the ministerial authorisations
made in terms of this Act. There can only be one water services authority in
any specific area and water services authority area boundaries cannot
overlap. Water services authorities are metropolitan municipalities, district
municipalities and authorised local municipalities;
 The primary responsibility for ensuring the provision of water services rests
with water services authorities. More specifically, water services authorities
have the following roles and responsibilities:
o They must ensure the realisation of the right to access to water
services, particularly basic water services (the first step up the ladder)
subject to available resources by seeing that appropriate investments
in water services infrastructure are made;
o They must prepare water services development plans to ensure
effective, efficient, affordable, economical and sustainable access to
water services which promote sustainable livelihoods and economic
development (stepping up the ladder);
o they must regulate water services provision and water services
providers within their area of jurisdiction and within the policy and
regulatory frameworks set by DWEA through the enactment of by-
laws and the regulation of contracts;
o they must ensure the provision of effective, efficient and sustainable
water services (including water conservation and demand
management) either by providing water services themselves or by
selecting, procuring and contracting with external water services
providers. The provision of water services also includes
communication activities related to, amongst other things, gender-
sensitive hygiene promotion and the wise use of water.
 Water services authorities have a right but not an obligation to provide
industrial water to or accept industrial wastewater from industries within
their area of jurisdiction;
 Where water supply systems cross water services authority boundaries,
water services authorities must co-operate with one another and with
regional water services providers (where these exist)
2.3.4 Water Services Provider
A water services provider is defined as any person who has a contract with a
water services authority or another water services provider to sell water to, and/or
accept wastewater for the purpose of treatment from that authority or provider
(bulk water services provider); and/or any person who has a contract with a water
services authority to assume operational responsibility for providing water
services to one or more consumers (end users) within a specific geographic area
(retail water services provider); or a water services authority which provides
either or both of the above services itself;
 The defining characteristic of a retail water services provider is
that the water services provider has operational responsibility for

28 | P A G E
the physical provision of the water and/or sanitation services to

one or more end consumers;
 The end consumer or “end user” of the services should have, at any
one time, no more than two water services providers – a retail
water supply services provider and a retail sanitation services
provider, or preferably a retail water services provider which
provides both water supply and sanitation services;
 Equally important and for the sake of practical accountability, a
municipality shoul only have one contract with one retail services
provider to be responsible for water and/or sanitation services in a
specific geographical area within the water services authority
area;
 There should be a single chain of contarcts that ensures the
effective delivery of water from the resource to the consumer and
the effective return of wastewater and human waste from the
consumer o the resource;
 A retail water services provider’s responsibility to provide services
should be geographically defined and there should not be an
overlap in contract areas between two retail water services
providers retailing water supply services and between two retail
water services providers providing retail sanitation services;
 Where appropriate, it is desirable that water service providers
assume primary responsibility for the consumer interface and
assume the operational and financial risk related to the services
and the collection of fees. Where community-based organisations
is acting as water service provider it might be necessary for the
water services authority to assume at least part of the financial
risk related to the provision of services.
DWA may consider transfer of its water services works;
 The private sector can be involved in a wide range of ways, including but not
limited to the following; acting as an external water services provider in
terms of a contract (service delivery agreement) with a water services
authority ,investing in a public utility (provided ownership control vests
with national government), and supporting other water services providers
as water services agents;
 Water services authorities establish retail water services tariff policies and
set retail tariffs for water services within the framework provided by
DWEA;
 Raw water tariffs from schemes owned by national government are set in
terms of the national raw water pricing strategy. The supply of water from
these schemes must be made in terms of a contract.
In terms of the Strategic Framework for Water Services, water supply services is
defined as the “abstraction from water resources, conveyance, treatment, storage
and distribution of potable water, water intended to be converted to potable water
and water for industrial or other use, to consumes or other water services
providers. This includes all the organisational arrangements necessary to ensure
the provision of water supply services including, amongst others, appropriate
health, hygiene and water-related awareness, the measurement of consumption
and the associated billing, collection of revenue and consumer care. Water services
authorities have a right but not an obligation to provide industrial water to
industries within their area of jurisdiction”. This definition in context refer to the
infrastructure that provides the services for supply of potable water;

29 | P A G E
Industrial water is defined as “water used for mining, manufacturing, generating

electricity, land based transport, construction or any related purpose” in context of
being supplied from the potable supply chain.
2.3.5 Water Services Act, 1997
The main objectives of this Act are to provide for –

 The right of access to basic water supply and the right to basic sanitation
necessary to secure sufficient water and an environment not harmful to
human health or well-being;
 Acknowledging that there is a duty on all spheres of Government to ensure
that water supply services and services and sanitation services are provided
in a manner which is efficient, equitable and sustainable;
 Acknowledging that all spheres of Government must strive to provide water
supply services and sanitation service sufficient for subsistence and
sustainable economic activity;
 Recognising that in striving to provide water supply services and sanitation
services, all spheres of Government must observe and adhere to the
principles of co-operative government;
 Acknowledging that although municipalities have authority to administer
water supply services and sanitation services, all spheres of Government
have a duty, within the limits of physical and financial feasibility, to work
towards this object;
 Recognising that the provision of water supply services and sanitation
services, although an activity distinct from the overall management of water
resources, must be undertaken in a manner consistent with the broader
goals of water resource management;
 Recognising that water supply services and sanitation services are often
provided in monopolistic or near monopolistic circumstances and that the
interest of consumers and the broader goals of public policy must be
promoted;
 Confirming the National Government’s role as custodian of the Nation’s
water resources.
Important Definitions
 Basic Sanitation – means the prescribed minimum standard of services

necessary for the safe, hygienic and adequate collection, removal, disposal or
purification of human excreta, domestic waste-water and sewage from
households, including informal households;
 Basic water supply – means the prescribed minimum standard of water
supply services necessary for the reliable supply of sufficient quantity and
quality of water to households, including informal households, to support
life and personal hygiene;
 Water supply services – means the abstraction, conveyance, treatment and
distribution of potable water, water intended to be converted to potable
water or water for commercial use but not water for industrial use;
Access to Water Services

30 | P A G E
No person may use water services from a source other than a water services
provider nominated by the water services authority having jurisdiction in the area
in question, without the approval of that water services authority;
Industrial Use – Section 7
 No person may obtain water for industrial use from any source other than
the distribution system of a water services provider nominated by the water
services authority having jurisdiction in the area in question, without the
approval of that water services authority;
 No person may dispose of industrial effluent in any manner other than that
approved by the water services provider nominated by the water services
authority having jurisdiction in the area in question;
 No approval given by a water services authority under the section relieves
anyone from complying with any other law relating to the use and
conservation of water and water resources or the disposal of effluent.
The last bullet directly links the Water Services Act, 1997 with the uses that
require licensing in terms of the National Water Act, 1998.
It must be taken into account that the use and control as stated above is vested in
the Local Municipality with regards to the “level” of service and does not take
away the right of DWA to provide raw water directly to an end-user.
Therefore it can be concluded that the Water Services Act, 1997, deals with water
after the licensing of this raw water allocation under the National Water Act,
1998, to a local municipality and deals with the supply of potable water. Through
this legislation, Local Authorities purify the water to a set standard and supply
potable water not only for domestic use but also for industrial use in so far as
these users are linked to terms of the National Raw Water Pricing Strategy for the
raw water allocation and adds to that the cost of purification and distribution as a
final cost to the functions. This is further confirmed in the National Water
Resource Strategy with specific reference to the Water Service Act, 1997, dealing
with potable water. The potable tariff is determined with approval of DWA
through the Water Services Development Plans and published in the by-laws.
A certain component of the raw water to be supplied from the project are
earmarked for domestic (potable) use which places a responsibility on the Water
Services Provider to apply for his own Entitlement in terms of the National Water
Act, 1998, similar to the other users, and purify this water to the standards as
prescribed through the Water Service Act, 1997.
The Water Services Act, 1997, allows the Water Services Provider to also provide
water for industrial use within its area of jurisdiction in so far as such user is
supplied from the municipal infrastructure and supply network-such user does not
draw water in its raw form directly from the resource, but receives purified
domestic water for industrial purposes via a water purification plant operated and
maintained by the Water Services Provider. This is confirmed throughout the Act
by constant reference to the ‘’level’’ of service.

31 | P A G E
2.5 NATIONAL ENVIRONMENTAL MANAGEMENT ACT,1998 (ACT 107 OF 1998)
Certain activities were identified in terms of Section 24 of NEMA that require

environmental authorisation. NEMA provides that the potential impact on the
physical, socio-economic and cultural-historic environments that can potentially
be caused by these listed activities be considered, investigated, assessed and
reported to the relevant authority to allow the relevant regulatory authority to
make a decision in terms of the authorisation and consequent implementation of
these activities
Table 2.1: Possible Applicable Listed Activities
Activity description - Basic Assessment Possible infrastructure

Activity
(Regulation 544) Explanation
The construction of facilities or infrastructure
exceeding 1000 meters in length for the bulk
transportation of water, sewage or storm water-
(i) an internal diameter of 0,36 metres or
more; or
(ii) a peak throughput of 120 litres per
second or more,
Excluding where:
9 Pipeline
a. Such facilities or infrastructure are for bulk
transportation of water, sewage or storm
water or storm water drainage inside a
road reserve; or
b. Where such construction will occur within
urban areas but further than 32 meters
from a watercourse, measured from the
edge of the watercourse.
The construction of:
(i) canals;
(ii) channels;
(iii) bridges;
(iv) dams;
(v) weirs;
(vi) bulk storm water outlet structures;
Possible infrastructure
(x) buildings exceeding 50 square meters
11 requirements at the
in size; or
abstraction point
(xi) infrastructure or structures covering
50 square meters or more;
Where such construction occurs within a
watercourse or within 32 meters of a watercourse,
measured from the edge of a watercourse, excluding
where such construction will occur behind the
development setback line.
The infilling or depositing of any material of more
than 5 cubic metres into, or the dredging,
excavation, removal or moving of soil, sand, shells,
shell grit, pebbles or rock from
(iv) A watercourse
18 (v) The sea Abstraction Infrastructure
(vi) The seashore
(vii) The littoral active zone, an estuary or
a distance of 100 metres inland of the
high-water mark of the sea or an
estuary, whichever distance is the

32 | P A G E
greater-
But excluding where such infilling, deposition,
dredging, excavation, removal or moving
(i) Is for maintenance purposes
undertaken in accordance with an
management plan agreed to by the
relevant environmental authority; or
(ii) Occurs behind the development
setback line.
The expansion of existing facilities for any process
or activity, where such an expansion will result in
the need for a new, or amendment of, an existing
Upgrade of the sewage
permit or license in terms of national or provincial
treatment plant –
legislation governing the release of emissions or
amendment to the existing
28 pollution, excluding where the facility, process or
Water Use License in terms
activity is included in the list of waste management
of the National Water Act,
activities published in terms of section 19 of the
1998
National Environmental Management: Waste Act,
2008 (Act No. 59 of 2008) in which case that Act
will apply.
The expansion of facilities or infrastructure for the
bulk transportation of water, sewage or storm
water where:
(a) the facility or infrastructure is expanded
by more than 1000 meters in length; or
(b) where the throughput capacity of the
facility or infrastructure will be increased
by 10% or more –
37 Pipelines
excluding where such expansion:
(i) relates to transportation of water, sewage or
storm water within a road reserve; or
(ii) where such expansion will occur
within urban areas but further than
32 meters from a watercourse,
measured from the edge of the
watercourse.
The expansion of:
(i) canals;
(ii) channels;
(iii) bridges;
(iv) dams;
(v) weirs;
Possible amendments to
39 (vi) bulk storm water outlet structures;
existing abstraction points
within a watercourse or within 32 meters of a
watercourse, measured from the edge of a
watercourse, where such expansion will result in
an increased footprint but excluding where such an
expansion will occur behind the development
setback line.
The expansion of facilities or infrastructure for the
transfer of water from and to or between any
combination of the following:
(i) Water catchments;
Transfer of water per se in
52 (ii) Water Treatment Works; or
support of the project
(iii) Impoundments
Where the capacity will be increased by 50 000
cubic metres or more per day, but excluding water
treatment works where water s treated for drinking

33 | P A G E
purposes.
Activity Activity description – EIA Possible
number (Regulations 545) infrastructure/Explanation
The construction of facilities or infrastructure for
any process or activity which requires a permit or
license in terms of national or provincial legislation Sewage treatment plant &
governing the generation or release of emissions, AMD Treatment Plants–
pollution or effluent and which is not identified in amendment to the existing
5
Notice No. 544 of 2010 or included in the list of Water Use License in terms
waste management activities published in terms of of the National Water Act,
section 19 of the National Environmental 1998
Management: Waste Act, 2008 (Act No. 59 of 2008)
in which case that Act will apply.
The construction of facilities or infrastructure for
the transfer of 50 000 cubic metres or more per day,
from and to or between any combination of the
following:
Transfer of water in
10 (i) Water catchments
support of the project
(ii) Water Treatment Works; or
(iii) Impoundments
Excluding treatment works where water is to be
treated for drinking purposes
Taken from the above list, the following applications will be required in terms of
the National Environmental Management Act, 1998. The final listed activities for
the conveyance systems will depend of the combined collection of the effluent prior
to discharge across a catchment boundary.
Table 2.2: Possible Listed Activity applicable to each operation in support of the overall project.
Company Activity
Regulation 544
Activity 9 – Pipelines from Abstraction Point
Lebalelo Water User Activity 18 – Abstraction Infrastructure
Association (LWUA) Activity 37 – Pipelines from Abstraction Point
Section 39 – possible expansions to existing
infrastructure at abstraction point
Regulation 544
Activity 9 – Pipelines to Discharge Point
Activity 11 – Size of associated Infrastructure
Activity 28 – Expansion of existing facilities
ERWAT Activity 52 – Expansion of facilities or infrastructure
for the transfer of water between catchments
Regulation 545
Activity 5 – Construction of facilities or infrastructure
that requires a permit of license
Activity 10 – Transfer of water between catchments
Regulation 544
Sappi Enstra Mill

34 | P A G E

Activity 52 – Expansion of facilities or infrastructure
Regulation 545
Regulation 544
Exxaro Zincor Activity 52 – Expansion of facilities or infrastructure
Regulation 545
Regulation 544
Individual Coal Mines Activity 37 – Pipelines from Abstraction Point
Regulation 545
Grootvlei Mine Regulation 544
Activity 52 – Expansion of facilities or infrastructure
Regulation 545
2.6 NATIONAL ENVIRONMENTAL MANAGEMENT: WASTE ACT, 2008 (ACT 59 OF 2008)
NEMWA came into effect on 1 July 2009 and Government Notice Regulation GNR
718, the list of waste management activities that have, or are likely to have a
detrimental effect on the environment was published in Government Gazette
32368 on 3 July 2009.
Section 2 of the Act states the objectives of NEMWA which are to protect the
health and well-being of the environment, ensure awareness of the impacts of
waste on health and provide for compliance with measures to protect health in
order to secure an environment that is not harmful to health and well-being.

35 | P A G E
A person who wishes to commence, undertake or conduct any activity listed under
Category A must conduct a Basic Assessment process, as stipulated in the
National Environmental Management Act (Act No 107 of 1998), as amended
(NEMA), as part of a waste management licence application. The proposed
approach to the Basic Assessment process is based on the Regulations contained
in GNR 543 of 2010. The licensing authority for this application would be DEA as
there are activities related to hazardous waste included in the activities.
Table 2.3: Possible listed activities under NEMWA applicable to the Olifants River Project
Possible infrastructure
Activity Category A
Explanation
The storage including the temporary storage of
hazardous waste at a facility that has the capacity
2 to store in excess of 35 m3 of hazardous waste at Brine disposal
any one time, excluding the storage of hazardous
waste in lagoons
The treatment of effluent, wastewater or sewage
11 with an annual throughput capacity of more than Treatment works
2 000 m3 but less than 15 000 cubic metres
The expansion of facilities of or changes to existing
facilities for any process or activity, which requires
Waste Water Treatment
19 an amendment of an existing permit or license or a
Works
new permit or license in terms of legislation
governing the release of pollution, effluent or waste
Activity Possible
Category B
number infrastructure/Explanation
The storage including the temporary storage of
1 Brine disposal
hazardous waste in lagoons
The treatment of effluent, wastewater or sewage
7 with an annual throughput capacity of 15 000 m3 or Treatment Works
more
Pending the final planning, the following activities may be applicable to the
Olifants River Project. This will need final revision.
Table 2.4: Possible Listed Activities applicable to each operation in support of the Olifants River
project
Company Activity
Category A
Activity 11 – Treatment works (pending volume)
Activity 19 – Expansion of facilities – waste water treatment
ERWAT
works
Category B
Category A
Activity 2 – Brine disposal after treatment
Sappi Enstra Mill works
Category B
Activity 1 – Storage of hazardous waste in lagoons
Category A
Exxaro Zincor Activity 2 – Brine disposal after treatment
Category B

36 | P A G E

Category A
Individual Coal Mines Category B
Grootvlei Mine Category A
works
Category B
2.7 MINERAL AND PETROLEUM RESOURCES DEVELOPMENT ACT, 2002
An Environmental Management Plan (EMP) Amendment will be required by the

various mining companies involved. Such an amendment requires a Scoping
Report, in terms of Regulations 49 and 50 of the MPRDA, and Environmental
Impact Assessment (EIA) that covers the following:
• Stakeholder engagement process;

• Assessment of impacts;
• Assessment of feasible alternatives;
• Development of an environmental management and monitoring plan;
• Provision of maintenance and emergency procedures; and
• Environmental awareness plan.
Normally, the EIA is undertaken in parallel with the requirements of the National
Environmental Management Act, 1998 and the National Water Act, 1998.
2.8 PARALLEL APPROVAL PROCESS
Environmental approval processes could be undertaken in a parallel process. A

harmonised process allows for the public participation process to be combined.
Specialist studies undertaken in support of the applications could allow for the
different requirements of each Department.
The figure below provides a schematic presentation of such a parallel process.

Section 3 provides diagrams of the approval process for each component.
It is anticipated that for the Olifants River Project, the following parallel
processes may be required:
 A combined Impact Assessment for the discharge of the purified sewage
effluent to the surface water resource should the discharge volumes be
combined into a single discharge pipeline. There will be three site specific
EIAs and Water use License Applications– Application to be undertaken
by ERWAT and a Section 22(2)(e) license needs to be provided by DWA for
the transfer of the water across the catchment boundary;
 A combined Impact Assessment for the release of treated acid mine drainage
from the Middelburg Coal Fields pending the number and locality of the
treatment plants and pipeline routes. It is unticipated that each mining

37 | P A G E
company will take the responsibility of the EIA & EMP, the NEMA
applications as well as the required Water Use License Application. The
LWUA could facilitate the process;
 Individual Applications for Grootvlei Mine, Exxaro Zincor and Sappi Enstra
Mill – EIA & EMP for Grootvlei Mine, NEMA application as well as Water
Use License Application for all three the companies. DWA as to provide
for a section 22(2)(e) license for the discharge of the water across the
catchment boundary; and
 Application in support of the abstraction to be undertaken by the Lebalelo
Water User Association in support of the members.

38 | P A G E
Figure 2.1: Schematic Parallel Application Process
PARALLEL ENVIRONMENTAL APPROVAL PROCESSES

ALTA VAN DYK ENVIRONMENTAL CC
ENVIRONMENTAL IMPACT ASSESSMENT WASTE PERMIT

MINERAL & PETROLEUM RESOURCES
WATER USE AUTHORISATION PROCESS EIA REGULATIONS EIA REGULATIONS
DEVELOPMENT ACT, 2002
NATIONAL WATER ACT, 1998 NATIONAL ENVIRONMENTAL MANAGMENT NATIONAL ENVIRONMENTAL MANAGMENT:
EMP
ACT, 1998 WASTE ACT, 2008
SECTION 40 & 42 REGULATIONS GN 385, 386, 387 REGULATIONS GN 718 SECTION 102
Pre-application consultation with DWA Pre-application consultation with LDEDT Pre-application consultation with DEAT Pre-application consultation with DMR
Formal application to DWA Formal application to LEDET Formal application to DEAT Formal application to DMR
14 days 14 days
Public Participation Process
Advertisements
Notifications
Flyers
Background Information Document
Public Meetings
30 days
Draft SCOPING REPORT & PLAN OF STUDY FOR EIA
30 days 40 days
I & AP Comment Period
Final SCOPING REPORT & PLAN OF STUDY FOR EIA
30 days 30 days 30 days

Authority Review
Authority Acceptance
120 days
Draft ENVIRONMENTAL IMPACT REPORT (EIA) & ENVIRONMENTAL MANAGEMENT PLAN (EMP)
I & AP Comment Period 40 days
Final ENVIRONMENTAL IMPACT REPORT (EIA) & ENVIRONMENTAL MANAGEMENT PLAN (EMP)
60 days Authority Review / consideration 60 days 30 days
No specified timeframes
45 days Authority Decision 45 days 90 days
NOTIFICATION TO ALL REGISTERED I & APS 10 days

Notice 10 days
Appeal 30 days Appeal period
WATER USE AUTHORISATION ENVIRONMENTAL AUTHORISATION WASTE PERMIT APPROVED EMP
NOTIFICATION TO ALL REGISTERED I & APS

39 | P A G E
3 PROJECT LEGAL REQUIREMENTS
With reference to section 2 the following approval processes are required.
3.1 PURIFIED SEWAGE EFFLUENT
It is proposed to obtain purified sewage effluent from the following three waste
water treatment plants:
 Welgedacht Waste Water Treatment Works;
 Daveyton Waste Water Treatment Works;
 Anchor Waste Water Treatment Works
All of the above Waste Water Treatment Works (WWTW) and managed and
operated by the ERWAT.
In terms of the requirements of the National Water Act, 1998, a water use
authorisation for these waste water treatment works will provide for certain
conditions authorising the discharge of the water to comply with certain waste
standards or management practices. The waste standards will specify the
quantity, quality and temperature of waste which may be discharged or allowed to
enter a water resource. It may also prescribe the outcome or effect which must be
achieved through management practices for the treatment of the waste, before it
is discharged or allowed to enter the water resource. As part of this teams scope
of work existing license documentation for the waste water treatment works were
sourced from DWA and submitted to the other work teams.
The legal requirements for each treatment works are discussed below.
3.1.1 Welgedacht WWTW
ERWAT is planning to increase the capacity of the Welgedacht WWTW from 35

ML/day with an additional 100 ML/day over the next 30 years. This expansion
will be phased in two phases of 50 ML/day each. An EIA in terms of NEMA was
undertaken in 2011 by Savannah Environmental (Pty) Ltd and an Environmental
Authorisation was issued in support of the discharge of the purified sewage
effluent into the Blesbokspruit. During the EIA process various concerns were
raised from existing downstream water users with regards to flooding problems as
well as problems of recharge to the underground workings of the existing
Grootvlei Mine operations (which are flooded). These options included the
following:
 Discharge into the Blesbokspruit as per the current discharge point;
 Discharge into the Blesbokspruit downstream of the RAMSAR
wetland area;
 Transferring the purified sewage effluent to the Olifants River or
Crocodile River Catchment areas; or
 Selling the purified sewage effluent for re-use purposes by other users
in the catchment.
The Department of Water Affairs (DWA) is currently considering the license

application for the discharge of the purified sewage effluent. There have been no

40 | P A G E
negotiations with the DWA with regards to the use of the treated effluent in
support of the project.
Figure 3.1 below summarises the legislative processes that will be required in
securing the water from the Welgedacht WWTW in support of this project. These
are discussed briefly below:
 National Water Act, 1998
o Water Use Licensing in terms of Section 21
 (c) – Pipeline crossings
 (i) – Pipeline crossings
 (f) - Discharge
o Section 22(2) (e) – Discharge Point
 National Environmental Management Act – Listed Activities
(Pipeline)
 National Environmental Management: Waste Act – Sludge (Should be
included into existing Permit/License)
In order to discharge the purified sewage effluent into the Olifants River
Catchment Area, DWA has to provide a section 22(2)(e) water use license directing
ERWAT with regards to the specific discharge point.
Figure 3.1: Welgedacht WWTW Legal Requirements
MOA - Re-use ERWAT WWTW ERWAT to undertake application up to discharge

LWUA - prevent point
reselling of the Water Use License application submitted to DWA
effluent WULA + IWWMP 2011 for discharge to Blesbokspruit - decision
pending
S22(e) - Exemption
S21(g) - Sludge Drying

Beds
S21(f) - Discharge EIA - Complete

Belsbokspruit RoD Issued (2011)
(General Standard)
S21(c) + (i) - Pipeline

EIA Required
River Crossings
Servitude Negotiations to release point
Floodline Wetland Design + Hydrology

Delineation Delineation Geotech

41 | P A G E
3.1.2 Daveyton WWTW
Daveyton WWTW discharges approximately 16 ML/day into the Blesbokspruit. In

order to discharge the purified sewage effluent into the Olifants River Catchment
Area, DWA has to provide a section 22(2)(e) water use license directing ERWAT
with regards to the specific discharge point.
securing the water from the Daveyton WWTW in support of this project. These
are discussed briefly below:
 (f) - Discharge
o Section 22(2) (e) – Discharge Point;
(Pipeline); and
 National Environmental Management: Waste Act - Sludge (Should be
Figure 3.2: Daveyton WWTW Legal Requirements
MOA - Re-use ERWAT WWTW ERWAT to undertake application up to

LWUA - prevent discharge point
reselling of the Operating under a 1956 Water Act
effluent WULA + IWWMP Permit
Conversion of existing Permit to 1998
Water Act Water Use License
S22(e) - Exemption
S21(g) - Sludge Dams,

Buffer Dam
S21(f) - Discharge
Belsbokspruit
Servitude Negotiations (General Standard)
EIA S21(c) + (i) - Pipeline

Public Participation River Crossings
Land Owner Consent to release point

3.1.3 Anchor WWTW
The Anchor Waste Water Treatment Works is operating under a 1956 Water Act
Permit. Permit No 2054B dated 6 January 2000 is appended in Annexure A of
this report.
The Permit states that the effluent to be discharged from this treatment works
into the Blesbokspruit be compliant with the General Standard and the Special
Standard for Phosphate.

42 | P A G E
In order to discharge the purified sewage effluent into the Olifants River
Catchment Area, DWA has to provide a section 22(2)(e) water use license directing
ERWAT with regards to the specific discharge point.
securing the water from the Anchor WWTW in support of this project. These are
discussed briefly below:
 (f) - Discharge
(Pipeline); and
 National Environmental Management: Waste Act - Sludge (Should be
Figure 3.3: Anchor WWTW Legal Requirements
MOA - Re-use ERWAT WWTW ERWAT to undertake application up to

LWUA - prevent discharge point
reselling of the Operating under a 1956 Water Act
effluent WULA + IWWMP Permit
Conversion of existing Permit to 1998
Water Act Water Use License
S22(e) - Exemption
S21(g) - Sludge Dams,

Buffer Dam
S21(f) - Discharge
Belsbokspruit
Servitude Negotiations (General Standard)
EIA S21(c) + (i) - Pipeline

Public Participation River Crossings
Land Owner Consent to release point

3.1.4 Aspects for consideration
Aspects that require consideration in obtaining the treated effluent as a source of

supply during the investigation phase include amongst other aspects the
following:
 An Agreement will need to be reached with ERWAT in order to

prevent the possible re-sell of the purified treated effluent to a third
party. Municipalities deem the option to re-sell purified sewage
effluent to industrial users within their area of jurisdiction as an

43 | P A G E
opportunity to recover cost. Therefore a possible Opportunity Cost

could be paid to ERWAT in support of the supply. Refer to the last
bullet for the possible management of this cost;
 Section 27 considerations – Over time downstream water users may
have become dependent on the discharge from the existing works in
support of their own livelihoods. Only lawful water users are
entitled to the use of the water as a downstream entitlement. Refer
to the specialist report as prepared by Schoeman & Partners which
takes water use in the Blesbokspruit into account;
 Reserve requirements – In most catchment areas no allowance has
been made for the implementation of the Reserve allocation of
entitlements may be required in order to meet the Reserve, to
rectify over-allocation and to redress the past racial and gender
discrimination;
 The DWA could use the application process in order to ensure that
ERWAT complies with all aspects of the National Water Act, 1998
pertaining to pollution control and prevention;
 The supply of purified effluent is directly dependent on the operation
and maintenance of its collection network. This collection network
consists of pipelines and pump stations that require constant
upgrade and maintenance;
 LWUA could negotiate aspects with regards to the capital and
operation and maintenance cost with ERWAT as an alternative
option. This option however is deemed less feasible due to the fact
that costs are not capped. Should the DWA issue a section 22(2)(e)
licence for the discharge of the water in favour of the LWUA, then
the opportunity costs, capital costs and operation and maintenance
cost will be incurred by DWA and recouped via a catchment
management charge from the LWUA.
3.2 WATER FROM THE GOLD AMD, CONTAMINATED GROUNDWATER AND INDUSTRIAL
EFFLUENT
A separate task team has been appointed to investigate the options around the
availability of water from the following industrial users:
 Grootvlei Mine;
 Zincor; and
 Sappi Enstra Mill
In support of this task team’s deliverables, the Legal & Institutional Task Team
obtained the existing License or Permit documentation. These documents are
appended in Annexure A of this report and were provided to Irene Lea in support
of scope of work. Actual compliance with the license conditions have not been
confirmed by this task team.
 Grootvlei Mine – License no 20018320 dated 19 May 2009;
 Zincor – License no 27/2/2/C521/107/9 dated 1 September 2010; and
 Sappi Enstra Mill – License no 08/C21D/FG/1505, File No
16/2/7/C212/B7 dated 24 January 2012.
In summary, the following are authorised in terms of the National Water Act,
1998, to each of these water users:

44 | P A G E
Table 3.1: Existing Authorisations in terms of the National Water Act, 1998
Company Discharge Licensed Water Quality Criteria for Discharge

Blesbokspruit Interim Water Quality Objectives –
discharge (2010)
 Electrical Conductivity as EC in mS/m - <400
 pH (pH units) – 6.5 – 8.5
 Suspended Solids in mg/l - < 55
 Chemical Oxygen Demand in mg/l - < 55
 Sulphate in mg/l - < 2 200
 Iron in mg/l - < 1.0
 Manganese in mg/l - < 1.0
Phased reduction in  Aluminium in mg/l - < 0.5
the discharge volume
from 31 025 000 m3/a Water Quality Objectives for the Bio-sure Treatment
to 20 075 000 m3/a Plant (2012)
Grootvlei
from the High-  Sulphate in mg/l - < 250
Proprietary Mines
Density Sludge Plant  Iron in mg/l - < 1.0
Limited
to the Blesbokspruit.  Manganese in mg/l - < 1.0
Allowance was made  Aluminium in mg/l - < 0.5
for a Bio-sure
Treatment plant. Long term objectives
 Electrical Conductivity as EC in mS/m - <45
 pH (pH units) – 6.5 – 8.5
 Suspended Solids in mg/l - < 15
 Chemical Oxygen Demand in mg/l - < 20
 Sulphate in mg/l - < 70
 Chloride in mg/l- < 80
 Iron in mg/l - < 1.0
 Manganese in mg/l - < 0.2
 Aluminium in mg/l - < 0.5
Water Quality Objectives for the Blesbokspruit
 Electrical Conductivity as EC in mS/m - <45 - 70
 pH (pH units) – 6.5 – 8.5
 Sodium in mg/l – 70 – 100
 Calcium in mg/l - 80
License provided
 Sulphate in mg/l - < 150 – 300
allows for the
 Magnesium in mg/l – 8 – 30
Hazardous Waste
Zincor: Exxaro  Potassium in mg/l – 25
Disposal Site and
Base Metal (Pty)  Zinc in mg/l – 3
some contaminated
Ltd  Total Dissolved Solids in mg/l - 450
water disposal areas
 Chloride in mg/l- < 80 - 150
(Note: Highlighted  Iron in mg/l - < 0.1 – 0.5
Currently Zincor is
qualities might be  Manganese in mg/l – 50
abstracting
a license error and  Aluminium in g/l - < 0.3
contaminated
should read µg/l)  Arsenic in g/l – 10
groundwater which
 Cadmium in g/l – 3
is stored in various
 Cobalt in g/l – 250
dams on site
 Copper in g/l – 500
 Nickel in g/l – 50
Possible unit error within the License document are
indicated for the highlighted variables (should
possibly be µg/l)
Discharge a volume Discharge Water Quality Objectives
Sappi Southern
of  pH – 5.5 – 9.5
Africa (Pty) Ltd –
9 333 600 m3/a into  Ortho Phosphate in mg/l - < 0.8
Enstra Mill
the Blesbokspruit  Ammonia as N in mg/l - < 2

45 | P A G E
 Nitrate as N in mg/l – 1.5

 E-Coli – 500 CFU/100 ml
 Electrical Conductivity in mS/m - < 70
 Total Dissolved Solids in mg/l < 1325
 Chemical Oxygen Demand in mg/l – 35
 Sodium in mg/l - < 100
 Chloride in mg/l – 150
 Suspended Solids in mg/l – 25
 Iron in mg/l – 40.96
 Fluoride in mg/l – 2.4
 Barium in mg/l – 1.3
 Boron in mg/l – 2.5
 Molybdate in mg/l – 63
 Manganese in mg/l – 5.7
 Silicon in mg/l – 131
 Selenium in mg/l – 2.7
 Strontium in mg/l – 0.49
The final report on the options available to use the effluent from the above water
users was not available at finalisation of this report. Therefore, the legal aspects
indicated are generic in nature and will be further refined should the option be
chosen.
Figure 3.4 and 3.5 below summarises the legislative processes that will be
required in securing the water from the Anchor WWTW in support of this project.
These are discussed briefly below:
 (f) - Discharge
(Pipeline)
 National Environmental Management: Waste Act – Brine generation;
and
 Mineral and Petroleum Resources Development Act – Grootvlei Mine.

46 | P A G E
Figure 3.4: Exxaro Zincor and Sappi Enstra Mill Legal Applications Required
Simplified Schematic Diagram NWA, 1998 NEMA, 1998 NEM:WA

Water Use 2010 EIA Regs 2009 Regs
Basic Assessment Basic Assessment

Section 22(2) (e)
Transfer across 9 - Bulk 2 - storage of
Abstraction / catchment transportation of hazardous waste
Discharge Point
Section 21(c) and 11 - Construction - 11 - Treatment of

(i) (river & infrastucture - 50 effluent,
drainage line m2 or more wastewater.......>
Brine Treatment Plant crossings) 2000 < 15000
/annum
37 - Expanion -
Bulk
Section 21(g) - transportation of
Disposing of water
waste
Discharge Point
Section 21(f) NWA 52 - Expansion -

(Discharge) transfer of water -
50 000 m3 or
more
Scoping & EIA Scoping & EIA
5 - activity that 1 - Storage of

requires a permit hazardous waste
or license in lagoons
7 - Treatment of
10 - Transfer of
effluent, waste
water between
water.................>
catchments
15000m3/annum
Cabinet appointed an inter-Ministerial Committee to address serious challenges

posed by the AMD in the Witwatersrand Goldfields Area. As a result of the
workings of the Committee Cabinet approved the installation of pumps to extract
the AMD from the mines to on-site treatment plants, to construct the on-site
treatment plants and to install infrastructure to convey treated water for
discharge into nearby watercourses. The Minister of Water Affairs already
exercised her discretion by directing the Trans Caledon Tunnel Authority (TCTA)
to implement and manage the pumping and treatment of the AMD. Technical
studies by the TCTA indicated that the Eastern basin AMD should be abstracted
by pumps installed in Grootvlei No 3 shaft to a level to allow Gold One to continue
mining Sub Nigel No 1 shaft.

47 | P A G E
Figure 3.5: Grootvlei Mine Legal Requirements
Simplified Schematic Diagram NWA, 1998 NEMA, 1998 NEM:WA MPRDA, 2002
Mine Section 21(a) 9 - Bulk 2 - storage of MPRDA

Abstraction Point NWA (Taking) transportation of hazardous waste
(AMD Point)

(i) (River and infrastucture - 50 effluent,
Brine Treatment Plant 2000 < 15000 /
annum
37 - Expanion -
Section 21(g) -
Bulk
Disposing of
transportation of
waste
water
Discharge Point
Section 21(f) NWA 52 - Expansion -
(Discharge) transfer of water -
50 000 m3 or
more
Section 22(2) (e) Scoping & EIA Scoping & EIA

Transfer across
10 - Transfer of 7 - Treatment of
water between effluent, waste
catchments water.................>
15000m3 / a
3.3 WATER FROM THE COAL AMD
The diagram below provides a detailed breakdown of the legal requirements in

order to obtain contaminated water from the coal fields, purify these to an
acceptable standard, and discharge the purified water into a water resource.
In order o obtain approval the following legislative processes may be required:

 The abstraction of the water from the coal fields will be deemed to be a
Section 21(a) water use in terms of the National Water Act, 1998.
 Transferring of the water via some form of conveyance structure will require
a number of river / stream or drainage line crossings. This activity will
trigger approval not only for some listed activities in terms of the National
Environmental Management Act, 1998, but will also require a section 21(c)
and (i) license in terms of the National Water Act, 1998. This includes the
crossing of any wetland areas;
 The treatment of the water may produce brine as a waste stream. The
disposal of the brine requires a waste permit in terms of the National
Environmental Management: Waste Act;
 Any changes to the existing mining infrastructure, financial provision and
management plan on a mining operation requires an amendment to the
existing Environmental management Programme Report (EMPR).

48 | P A G E
The diagrams below represent a schematic layout of the possible approvals

required.
Figure 3.5: Abstraction of Acid Mine Drainage in the Middelburg Coal Fields
Simplified Schematic Diagram NWA, 1998 NEMA, 1998 NEM:WA MPRDA, 2002
Mine Section 21(a) 9 - Bulk 2 - storage of MPRDA

Abstraction Point NWA (Taking) transportation of hazardous waste
(AMD Point)

(i) (River and infrastucture - 50 effluent,
Brine Treatment Plant crossings)
Section 21(g) - 37 - Expanion -

Disposing of Bulk
waste transportation of
water
Discharge Point
Section 21(f) NWA
(Discharge) 52 - Expansion -
transfer of water -
50 000 m3 or
more
Scoping & EIA Scoping & EIA

10 - Transfer of 7 - Treatment of
water between effluent, waste
catchments water.................>
15000m3/a
3.4 LEBALELO WATER USER ASSOCIATION
The Lebalelo Water user will ultimately abstract the supplied water from the
various sources. At this stage abstraction may take place at two abstraction
points:
 Flag Boshielo Dam; and
 Hovercraft Weir.
Water tariffs will be as per the Raw Water Pricing Strategy for raw water.
As water will be taken as raw water from the surface water resource, the following
approval processes will be applicable:
 National Water Act, 1998 – Section 21(a) (Abstraction), (c) and (i)
(River crossings, wetland crossing of the pipeline route); and
 National Environmental Management Act, 1998 – Listed Activities.
Figure 3.6 summarises the regulatory approvals as required by the Lebalelo

Water User Association.

49 | P A G E
Figure 3.6: Abstraction of raw water by downstream water user
NWA, 1998 NEMA, 1998

Water Use 2010 EIA Regs
Basic Assessment
Section 21 (a) 9 - Bulk

Abstraction Point NWA (Taking) transportation of
(Taking Point)
Section 21 (c) 11 - Construction -

(Pipelines - river, infrastucture - 50
drainage line and m2 or more
wetland crossings)
37 - Expanion -
Bulk
transportation of
water
Section 21 (i)
(Pipelines - river,
drainage line and 52 - Expansion -
wetland crossings) transfer of water -
50 000 m3 or
more
Scoping & EIA
5 - activity that
requires a permit
or license

50 | P A G E
4 CONTACT INFORMATION
The following contact information on responsible persons within the three tiers of
government has been identified. It should be noted that the information in subject
to change as more up to date information become available.
5.1 DEPARTMENT OF WATER AFFAIRS
5.1.1 Water Services
The contact details of the key person in DWA Head office are provided in the table
below.
TEL CEL FAX EMAIL

DWA WATER SERVICES
Helgard Muller Chief Director: Water Services 012 336 6567 082 807 4332 012 323 3877 [email protected]
Fred van Zyl Manager: Planning & Information 012 336 8812 082 806 5307 012 321 1193 [email protected]
Senior Specialist Engineer: WS
Allestair Wensley Information 012 336 8767 082 808 5642 012 321 1193 [email protected]
Scientist Manager: Technical

Mike Warren Knowledge, Innovation & Guidance 012 336 8056 082 809 0668 012 336 6609 [email protected]
Deputy Director: Planning
Stephen Marais Frameworks 012 336 8276 082 808 0408 012 321 1193 [email protected]
Johan Fourie ISRDP coordinator 012 336 6824 082 652 1323 012 321 1193 [email protected]
The organogram of the water services section in DWA are indicated below.
WATER SERVICES
WS Policy and Strategy WS Sector Development WS Planning & WS Regulation

Information
Antonio Manus Mbuso Zama Thoko Sigwaza
Fred van Zyl
Policy & Strategy WSI Development Technical Knowledge Economic Regulation

Coordination
Petunia Ramunenyiwa Mike Warren Kavitha Kassie
Shantel Harigobin
Strategic Assessment Sector Economics & Planning Frameworks Technical Regulation

Finance
Chibesa Pensulo Stephen Marais Leonardo Manus
Mbuso Zama
Regional Institutional WS Information Contract Regulation

Models
Allestair Wensley Bongiwe Msane
Norman Nokeri

51 | P A G E
5.1.2 Water Quality Management
TEL CEL FAX EMAIL

DWA GAUTENG
Chief Director: Gauteng Hennie Smit 012 392 1303 082 802 5715 012 392 1304 [email protected]
Director: Water Sector Support Mr T Mnguni 012 392 1511 082 317 6424 012 392 1408 [email protected]
Director: Institutional Establishment Maruis Keet 012 392 1306 082 807 3522 012 392 1359 [email protected]
DWA MPUMALANGA
Chief Director: Mpumalanga Mr F Mntambo 013 759 7310 083 628 7614 013 759 7525 [email protected]
Director: Water Sector Regulation and Use Ms M Musekene 013 759 7313 083 492 9690 086 666 6217 [email protected]
Director: Institutional Establishment Mr Johann van Aswegen 013 932 2042 082 807 4198 013 932 2071 [email protected]
DWA LIMPOPO
Chief Director: Limpopo Alson Matukane 015 290 1215 082 807 5643 015 295 2295 [email protected]
Director: Water Sector Support and Development
Mr R Mtileni 015 290 1227 082 329 0801 086 694 9381 [email protected]
Director: Water Service Mr M Shaker 015 290 1231 082 804 2886 015 295 2295 [email protected]
Director: Water Regulation and Use Martha Komape 015 290 1463 082 941 7965 [email protected]
Director: Institutional Establishment Ms L Kobe 015 290 1213 082 908 7924 015 295 3249 [email protected]
5.2 DEPARTMENT OF MINERAL RESOURCES
TEL FAX EMAIL

DMR REGIONAL OFFICES
MPUMALANGA
General 013 653 0500 013 690 3288
Regional Manager Mr Aubrey Tshivhandekano [email protected]
Secretary Ms L maphopha [email protected]
GAUTENG
General 011 358 9700 011 339 2423
Regional Manager Ms Martha Maduka [email protected]
Secretary Ms C Khanyile [email protected]
LIMPOPO
General 015 287 4700 015 287 4729
Regional Manager A K Kharivhe [email protected]
Secretary Ms M Mangaba [email protected]

52 | P A G E
5.3 DEPARTMENT OF ENVIRONMENTAL AFFAIRS
National
Director for Environmental Impact Evaluation
TEL CEL FAX EMAIL
Ms Lebogang Molefe Director 012 310 3230
Deputy Director:
Applications from
Ms Mosili Ntene 012 310 3200
National
Departments
GAUTENG
Gauteng Department of Agriculture and Rural Development (GDARD)
Pirate Ncube Chief Director 011 355 1953 [email protected]
Zingisa Smale Director 011 355 1927 [email protected]
Shamilla Jhupsee Director 011 355 1819 [email protected]
Janet Welchman Director [email protected]
Dhiraj Rama Director 011 355 1983 [email protected]
LIMPOPO
Department of Economic Development, Environment and Tourism
Greater Sekhukune (Makhuduthamaga, Fetakgomo, Greater Thubatse, Greater Grobblersdal, Greater MarbleHall
Ms M E Molepo Official 015 295 5633 015 295 5015 [email protected]
Ms Rosemary Mashele Official 015 295 5528 082 521 2240 015 295 5015 [email protected]
Mopani and Capricorn (Polokwane, Lepelle Nkumpi, Molemole, Aganang, Blouberg)
Ms Grace Rasesepa Official 015 295 9300 082 277 8772 015 295 5015 [email protected]
Ms Fatima Nkhwashu Official 015 295 5528 082 803 9760 015 295 5015 [email protected]
MPUMALANGA
Department of Agriculture and Land Administration
Dr Garth Batchelor Official 013 766 6077 013 766 8445 [email protected]
Norma Mdhluli Ehlanzeni 013 759 4049 013 759 4091 [email protected]
Charity Ntimunye Nkangala 013 690 1269 013 656 5469 [email protected]
Surgeon Marabane Official 017 819 1155 017 819 2828 [email protected]

53 | P A G E
5.4 PROVINCIAL DEPARTMENTS
TEL CEL FAX EMAIL
GAUTENG PROVINCIAL GOVERNMENT

Premier Ms Nomvula Mokonyane 011 355 6000 011 836 9334 [email protected]
Spokesperson Mr Dumisani Zulu 011 355 6218 082 602 3532 011 836 9334 [email protected]
Director-General Ms Nosizwe Nokwe Macamo 011 355 6201 011 834 9177 [email protected]
PA to Direct-General Ms Phumzile Mdakane 011 355 6201 011 834 9177 [email protected]
Speaker Ms Lindiwe Maseko 011 498 5964 011 498 5692 [email protected]
Political Advisor Mr Mzi Khumalo 011 498 5967 079 522 9067 011 498 5692 [email protected]
MEC Economic
Development &
Planning Ms Qedani Dorophy Mahlangu 011 355 8703 011 834 1972 [email protected]
MEC Infrastructure
Development Mr Bheki Simon Nkosi 011 355 5010 011 355 5182 [email protected]
LIMPOPO PROVINCIAL GOVERNMENT

Premier Mr Cassel Charlie Mathale 015 287 6515 015 295 3827 [email protected]
Spokesperson Mr Phuto Mosomane 015 287 6083 082 729 2783 015 295 3840 [email protected]
Director-General Ms Rachel Molepo-Modipa 015 287 6017 015 291 4462 [email protected]
MEC Economic
Development,
Environment and
Tourism Ms Pinkie Kekana 015 293 8523 015 293 8317
MPUMALANGA PROVINCIAL GOVERNMENT

Premier Mr David Dabede Mabuza 013 766 2027 013 766 2494 [email protected]
Spokesperson Mr Ronald Lamola 013 766 2055 072 926 9280 013 766 2494 [email protected]
Director-General Mr Jacob Rabodila 013 766 2121 013 766 2500 [email protected]
MEC Economic
Development,
Environment and
Tourism Mr Norman Mokoena 013 766 4554 013 766 4617 [email protected]
5.5 LOCAL AUTHORITIES
Pending overall project planning, the following local authorities may have to be
consulted during the Public Participation Process.

54 | P A G E
TEL CEL FAX EMAIL
EKURHULENI METROPOLITAN MUNICIPALITY

Executive Mayor Cllr Mondli Gungubele 011 999 0906 011 999 1564 [email protected]
Municipal Manager Mr Khaya Ngema 011 999 0863 011 820 4319
Political Advisor Mr Prince Hamnca 011 999 0580 082 454 6742 011 999 1564 [email protected]
Head of Communications Ms Gwen Shole-Menyatso 011 9990170 011 820 4310
GREATER SEKHUKHUNE DISTRICT MUNICIPALITY

Executive Mayor Cllr Mogobo David Magabe 013 262 7332 013 262 5849
Municipal Manager Mr Samson Makunyane 013 262 7308 013 262 4303
Head of Communications Ms Mapule Mokoko 013 262 7321 082 049 7748 013 262 5849 [email protected]
GREATER TUBATSE LOCAL MUNICIPALITY

Executive Mayor Cllr Mahlake Nkosi 013 231 1000 013 231 8624
Municipal Manager Mr Simon Malepeng 013 231 1000 013 231 7251
Head of Communications Mr Thabiso Mokoena 013 231 1000 082 447 4788 013 231 7467 [email protected]
MOGALAKWENA LOCAL MUNICIPALITY

Executive Mayor Cllr Esther Mothibi 015 491 9608 015 491 9638
Municipal Manager Mr Willy Kekana 015 491 9604 015 491 9638 [email protected]
Head of Communications Mr Abram Tsebe 015 491 9761 015 491 9638
MOOKGOPHONG LOCAL MUNICIPALITY

Executive Mayor Cllr Sarah Monyamane 014 743 6600 014 743 2434
Municipal Manager Mr Phil Molebaloa 014 743 6600 014 743 2434
POLOKWANE LOCAL MUNICIPALITY

Executive Mayor Cllr Freddy Greaver 015 290 2103 015 290 2106
Municipal Manager Mr Sam Mabotja 015 290 2102 015 290 2106 [email protected]
Head of Communications Mr Simon Mokoatedi 015 290 2143 082 412 8091 015 290 2106 [email protected]
CAPRICORN DISTRICT MUNICIPALITY

Executive Mayor Cllr Lawrene Mapoulo 015 294 1201 015 295 4010
Municipal Manager Ms Meriam Molala 015 294 1076 015 291 4297
Head of Communications Mr Jabu Masondo 015 294 1081 015 295 4010
FETAKGOMO LOCAL MUNICIPALITY

Executive Mayor Cllr Raesetse Elizabeth Sefala 015 622 8002 015 622 8027
Municipal Manager Ms Motlanalo Lebepe 015 622 8001 015 622 8015 [email protected]
Head of Communications Mr Jameson Mabelane 015 622 8012 015 622 8026
EMALAHLENI LOCAL MUNICIPALITY

Executive Mayor Cllr Salome Sithole 013 690 6911 013 690 6207
Municipal Manager Mr Adam Engelbrecht 013 690 6911 013 690 6207
Head of Communications Mr Lebo Mofokeng 013 690 6911 082 427 8877 013 690 6207
NKANGALA DISTRICT MUNICIPLAITY

Executive Mayor Cllr Katisi Speedy Mashilo 013 249 2008 013 249 2056
Municipal Manager Mr Tenane Charles Makola 013 249 2000 013 249 2087
Head of Communications Mr Zamani Mcineka 013 249 2000 013 249 2087
Excel spread sheet in support of a total contact list for the project provided separately. This
project list must be updated as the information on responsible persons in each department
becomes available.

55 | P A G E
5 RISK ASSESSMENT
Based on the information provided, a high level risk assessment was undertaken
for the Concept Phase of the project. This risk assessment does not take the other
project teams risk assessments into account as their final reports were not yet
made available to the Legal and Institutional Task Team.
This Risk Assessment will be brainstormed and discussed in a separate workshop

to be held on 2 and 4 May 2011. The Table below provides a first level risk
assessment..

56 | P A G E
RISK IDENTIFIED PROBABILITY POTENTIAL TYPE OF POSSIBLE MITIGATING MEASURES

OF SEVERITY OF IMPACT
OCCURRENCE IMPACT
Give short description Low Low Time delay How can we remedy it?
Medium Moderate Cost
High Serious Social
Catastrophic Environmental
Other
General – Section 22(2)(e) License Requirements
Increased storage capacity in system (hierarchy of use of
Effective communication with DWA – support in terms of
available storage created in mines, operating rules of dams,
the concept project, not more water available in system
High Serious Social assurance in supplies)
and system already over allocated – (considering
Section 22(2)(e) required licenses with regards to the
domestic supply at high level of assurance)
discharge points.
Purified sewage effluent from the ERWAT WWTW
Need to go into discussion with ERWAT and DWA in this
WWTWs exacerbate flooding risk wetland area – regard as DWA is giving consideration to the discharge options
discharge require management—ERWAT selling the High Serious Financial as presented during the EIA phase.
effluent – if not available future loss of income (ERWAT confirmed with ART that no such discussions have
commenced and that the option is available.
DWA to issue the section 22(2)(e) License indicating to ERWAT
where the discharge point should be. DWA to provide the
capital cost for the transfer pipeline and recoup all the cost
ERWAT – reselling of effluent – opportunity costs High Serious Project
associated with the transfer from the LWUA as a catchment
management charge. This could include an opportunity cost
to ERWAT as to prevent the re-selling of the effluent.
The result of urbanisation will led to more excessive return
WWTWs – existing dependence of downstream users Social + nd
Medium Moderate flows and 2 phase of Katze dam will make more water
(incl municipalities, commercial farmers, irrigation) Environmental
available for domestic and industrial use
Grootvlei Mine
Existing initiatives by the DWA to address this aspect
High Moderate Availability Undertake discussions with DWA.
could make this option difficult

57 | P A G E
RISK IDENTIFIED PROBABILITY POTENTIAL TYPE OF POSSIBLE MITIGATING MEASURES

OF SEVERITY IMPACT
OCCURRENCE OF IMPACT
Give short description Low Low Time delay How can we remedy it?
Medium Moderate Cost
High Serious Social
Catastrophic Environmental
Other
Use of the River system
Use of the river system as conveyance – High Serious Environmental Release of more water as to meet the existing lawful
evaporative losses, illegal water use, discharge water users assurance in supply aspects.
into river bank
Enforcement of metering of existing lawful Medium Moderate Environmental Enforcement of monitoring and reporting aspects.
water use unless it was a condition under the LWUA to possibly undertake this function in support
1956 Water Act. of the project. LWUA are of jurisdiction, roles and
responsibilities to be amended.
Compliance monitoring and enforcement by High Serious Environmental Establish a body in terms of the National Water Act
DWA to act in the regulatory function. LWUA could
possibly undertake this function. LWUA area of
jurisdiction, roles and responsibilities to be amended.

58 | P A G E
6 CONCLUSION
 The Lebalelo Water User Association (LWUA) has to negotiate with the
Department of Water Affairs (DWA) towards the implementation of the
project;
 The negotiations with ERWAT, Grootvlei Mine, Zincor and the mines in the
coal fields must not be undertaken by the LWUA, but by DWA as the
custodian of the water resource;
 Even though Section 21 licenses will be issued to the various companies
involved, the DWA has to issue Licenses to ERWAT, Grootvlei Mine and
Zincor in support of the transfer of the water into another resource which
becomes part of the national resource management and catchment
management strategy for the area (Section 22(2)(e) specifying the discharge
point);
 DWA therefore has to issue a Directive to each company instructing that
particular company to not release the treated water into the water resource
closest to its operations but to transfer the water across a catchment
boundary in support of a particular use such as the use by the LWUA. DWA
will through this directive specify the discharge point;
 Therefore DWA will need to invest in the cost associated with the transfer of
the water across the catchment and levy this cost as a catchment
management charge to the users – in this instance the LWUA;
 Water transferred is levied in accordance to the Raw Water Pricing
Strategy. The LWUA will obtain a Section 21(a) abstraction license for a
specified volume which the LWUA will distribute amongst its members.
The LWUA will in return recoup the cost as billed by DWA from its users;
 The LWUA could consider negotiations with each of these companies with
regards to the capital and operation and maintenance costs associated with
the required pipelines, but this will only add to the overall cost for the WUA;
 Section 21 provides for the licensing of water use. The main applicable
water uses that will apply to the project are the following:
o Section 21(a) – Taking of water from the water resource. The LWUA
will apply for the bulk abstraction license from the Flag Boshielo Dam
or the Hovercraft weir in support of the supply;
o Section 21(f) – ERWAT, Grootvlei Mine, Zincor as well as the mining
companies in the coal fields area will need to apply for discharge
licenses for each operation which will need to be supported by the
DWA section 22(2)(e) directives where required;
 Should there be a need for a pipeline as to support the transfer of the
treated water across the catchment boundary, several drainage lines, rivers,
streams of wetland areas may need to be crossed. The DWA require a
license application in support of section 21(c) and (i) of the Act for the
impeding or diverting of the flow in a watercourse or the altering of the bed,
banks, course or characteristics of a watercourse.
 The activities as listed above also require an Environmental Impact
Assessment (EIA) in terms of the National Environmental Management Act,
1998. Such EIA will need to be undertaken by each company in support of
the listed activities.
 The Lebalelo Water user Association could ideally increase its area of
jurisdiction as to also include the area of the coal mines in the Middle
Olifants water management area with regards to the discharge of the
treated AMD water and obtain servitudes for the pipeline routes in support
of the water use,

59 | P A G E
7 REFERENCES
Casper Human – personal Communication
DWA, 1998. Getting to know the National Water Act and WARMS – Second Draft.
DWA, 1999. Establishment of a Pricing Strategy for Water Use charges in terms
of Section 56(1) of the National Water Act, 1998. Government Gazette 20615
dated 12 November 1999, No 1353
DWA, 1999. Water Services Development Plans. Reference pack to support the
Supplementary Guidelines for Local Authorities
DWA, 1994. Water Supply and sanitation Policy. White Paper.
DWA, 1997. White Paper on a National Water Policy for South Africa.
DWA, 2003. Strategic Framework for Water Services.
DWA, 2004. National Water Resource Strategy, First Edition.
DWA, 2001. Water Services Act. Water Services Provider Contract Regulations.
DWA, 2001. Water Services Act. Norms and Standards in respect of tariffs for
water services in terms of Section 10(1) of the Water Services Act, (Act no 108 of
1997).
DWA, 2007. Establishment of a Pricing Strategy for Water Use charges in terms
of Section 56(1) of the National Water Act, 1998. Government Gazette No 29697
dated 16 March 2007, No 201.
Ossie Rossouw’ – Personal Communication
Republic of South Africa, 1998. National Water Act (Act 36 of 1998). Government
Gazette No 398 dated 26 August 1998 No 19182.
Republic of South Africa, 1997. Water Services Act. Act 108 of 1997.

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Rótann

Olifants River Project

Legal and Institutional Arrangements

“…………we all live down stream……….”

Olifants River Project

Legal and Institutional – Concept

Prepared by: Alta van Dyk

Reviewed by: Alta van Dyk

Alta van Dyk Environmental cc

Approved by: Alta van Dyk

Position: Environmental Specialist

Date: April 2012

Benefits associated with the project

Constitution of South Africa (No 108 of 1996)

National Water Act, 1998 (Act 36 of 1998)

Water Services Act, (Act 108 of 1997)

The Raw Water Pricing Strategy as applicable:

A detailed investigation was undertaken by Schoeman and Partners as to determine any

1 BACKGROUND AND INTRODUCTION 1

1.1. PROJECT OPTIONS UNDER CONSIDERATION 1

2.1. THE CONSTITUTION AND USE OF WATER 4

3 PROJECT LEGAL REQUIREMENTS 39

3.1 PURIFIED SEWAGE EFFLUENT 39

5.1 DEPARTMENT OF WATER AFFAIRS 50

ANNEXURE A – EXISTING LICENSE DOCUMENTS

1 BACKGROUND AND INTRODUCTION

1.1. PROJECT OPTIONS UNDER CONSIDERATION

In summary this projects allowed for different areas of investigation:

The following limitations to this project should be noted:

AVD - OLIFANTS RIVER PROJECT -LWUA

 Department of Water Affairs – Copies of licensing documentation as

1.2 SCOPE OF WORK

The following scope of work formed part of the work completed:

Objective Scope of Work

AVD - OLIFANTS RIVER PROJECT -LWUA

terms of sections 28, 59(1)(a) and (b) of the Water

Obtain copies of the following supporting material

AVD - OLIFANTS RIVER PROJECT -LWUA

This section of the report summarises:

2.1. THE CONSTITUTION AND USE OF WATER

Environmental Rights- It places a responsibility on the Government to ensure that

Right to Access to Sufficient Water- National Government has to take reasonable

AVD - OLIFANTS RIVER PROJECT -LWUA

(b) Participate in national and provincial development programmes.

2.2 WATER RELATED LEGISLATION

The applicability of the legislation in context to the Olifants River project is

AVD - OLIFANTS RIVER PROJECT -LWUA

2.3 NATIONAL WATER ACT, 1998 (ACT 36 OF 1998)

2.3.1 White Paper on a National Water Policy for South Africa

AVD - OLIFANTS RIVER PROJECT -LWUA

• 11 – International water resources, specifically shared river systems, shall

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• 25 – The right to access to basic water (provision of potable water supply

2.3.2 National Water Act, 1998

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Therefore, DWA may:

2.3.3 Pricing Strategy – Raw Water Use Charges

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o For funding water resource management – activities to regulate,