South Africa's water trading laws and the proposed amendments to the National Water Act

James explained that the National Water Act is the primary legislation governing South Africa's water resources. He noted that the proposed amendments represent the first major update to the Act in more than a decade. Key proposals include prohibiting private water trading, establishing strategic water management areas, strengthening enforcement mechanisms and introducing tougher penalties for non-compliance.

James further explained that, to understand the proposed prohibition on private water trading, it is important to first understand the current legislative framework. Under the existing Act, holders of water use entitlements may temporarily surrender part of their allocation to a third party for use on another property in the same vicinity, subject to certain conditions. While the Act does not expressly provide for financial compensation, this practice has developed commercially over time and was recently supported by a court judgment. The proposed amendments seek to prohibit this form of private trading, signalling a significant shift in the regulation of water use rights in South Africa.

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