National Water Act, 1998 (Act No. 36 of 1998)

The application of the first tier pricing strategy to this sector will be identical to that of the water services authority sector, except for the aspect of dealing with basic human needs. The introduction of the water resource management charge will be based on full financial cost recovery by charging for "economic" uses of water in the water management area and will be implemented after registration of water uses in the area. The water resource development and use of waterworks charge will be subject to increases of the PPI + 10% over current tariffs for the first number of years from April 2000 onwards. The objective is to reach the target charges within ten years. Thereafter, annual tariff increases will be limited to the inflation rate (PPI). Tariffs will not be reduced below the level of the previous year.