Securing South Africa’s water future: An overview of the Water Resources Infrastructure Agency Act

On 7 February 2025, the South African National Water Resources Infrastructure Agency SOC Limited Act (No. 34 of 2024) came into force, creating a unified, state-owned vehicle tasked with revitalising and managing the country’s critical water infrastructure.

Below, we outline the Act’s key features, the transition from the Trans-Caledon Tunnel Authority (TCTA), and what practitioners, municipalities, and investors need to know.

1. Why a new agency?

Years of under-investment, ageing pipelines and dams, and mounting demand (aggravated by urban growth and climate extremes) have left many regions facing intermittent supply and water-quality failures.

Establishing a dedicated infrastructure agency responds to constitutional obligations to secure water resources (Sections 10, 11, 24 and 27 of the Constitution) and builds on the technical functions long housed in the TCTA.

2. Establishment and governance

State-owned company: The Act incorporates the South African Water Resources Infrastructure Agency (the “Agency”) as a Schedule 2 public entity under the PFMA and a company under the Companies Act, wholly owned by the state.

Board and executive leadership: A Board of between 11 and 13 members (including two executive members (CEO and CFO) and up to 11 non-executives) sets strategy, oversees finance and ensures compliance with national water policy.

Appointments follow a transparent nominations process, with terms capped at two five-year periods to encourage renewal.

Ministerial oversight: The Minister of Water and Sanitation approves the Agency’s five-year strategic plan and retains powers to issue directives, request investigations, or intervene if necessary.

3. Core functions

Section 6 of the Act empowers the Agency to:

• Plan strategically: Produce and publish a five-year infrastructure plan aligned to the National Water Resource Strategy and national development goals, with climate-resilience measures built in.
• Operate and maintain: Manage, refurbish and expand dams, tunnels, pipelines and associated works to ensure continuous, equitable water supply.
• Fund and finance: Leverage existing asset-backed revenue streams, collect water-use charges, and secure new funding (public or private) for infrastructure projects.
• Skill development: Recruit and train technical and managerial staff to sustain high operational standards.
• Legal and commercial acts: Contract with water users, enter JV agreements, acquire property, and pursue or defend legal actions as necessary.
• Social and transformation objectives: Promote job creation, support local suppliers and integrate B-BBEE principles in line with government transformation goals.
• Continuity of TCTA functions: Absorb both the Treaty and non-Treaty roles of the TCTA, ranging from Lesotho Highlands Water Project obligations to financial-risk management, through a phased transfer.

4. Transfer of assets and disestablishment of the TCTA

Within twelve months of commencement (extendable by Gazette notice), the Minister must publish a date for:

• Asset transfer: All national water infrastructure assets, liabilities, existing water-use agreements and staff move from the Department of Water and Sanitation (and the TCTA) to the new Agency.
• TCTA wind-down: The TCTA is formally disestablished once its functions have been handed over, ending duplication of governance and consolidating expertise.

5. Implications for stakeholders

Municipalities & water services authorities

• Stronger bulk supply: With a dedicated national operator, bulk-water delivery should stabilise, but local distribution networks still require investment.
• Partnership opportunities: Municipalities can engage the Agency on joint projects, such as reuse schemes or desalination plants, under clear contractual frameworks.

Private investors & developers

• PPP and concessions: The Agency’s mandate to secure funding opens pathways for public-private partnerships, concession tenders and project financing.
• Clarity on charges: Standardised water-use tariffs and transparent cost-recovery models reduce revenue-risk uncertainties.

Legal practitioners

• New contracting regime: Lawyers ang legal advisers must familiarise themselves with the Agency’s negotiation protocols, governance code requirements, and the transfer mechanics from TCTA.
• Regulatory compliance: Ensuring that all agreements, guarantees and land uses comply with both the Agency Act and the National Water Act will be critical.

End-users & civil society

• Accountability: Quarterly and annual reporting requirements, mandated under the PFMA, mean civil society can track performance against service-delivery and transformation targets.
• Stakeholder engagement: Consultations on the strategic plan and major infrastructure projects are legally required, offering communities a voice in design and implementation.

6. Looking ahead

The Water Resources Infrastructure Agency Act lays a strong institutional foundation for addressing South Africa’s water-security crisis. Yet lasting impact hinges on parallel upgrades to ageing municipal networks, consistent maintenance funding, and robust intergovernmental cooperation.

For legal practitioners across government and private practice, this Act signals both new opportunity and shared responsibility in safeguarding our most precious resource.

For more information and advice, contact Dee-dee Mathelela, Head of our Dispute Resolution Practice.