Improved Water Board Performance Fails To Resolve Ongoing Supply Challenges For Communities

CAPE TOWN, South Africa, 11 March 2026 – The Portfolio Committee on Water and Sanitation has welcomed the improved performance of two water boards, Lepelle Northern Water and Overberg Water, but cautioned that misalignment within the water value chain continues to result in communities experiencing dry taps.

The committee is currently considering the annual reports of all water boards and recently received briefings from Lepelle Northern Water and Overberg Water. While it commended the improving governance and operational performance of both entities, the committee noted that the lived experiences of end users in the areas served by these boards often present a different reality to the positive outcomes reflected in performance reports.

“The good performance by the water boards is a direct representation of a fractured system, where improvements in the performance of the water boards do not translate into direct positive outcomes for communities. In a fully functional system, improvements in the performance of the water boards would lead to a tangible improvement in water access for the people,” said Mr Leon Basson, Chairperson of the committee.

Municipalities, which are a critical role player in the water value chain, continue to exert downward pressure on the system through high levels of non-revenue water within municipal reticulation systems and persistent non-payment for bulk water services supplied by the water boards. These challenges pose a significant risk to the financial sustainability of water boards.

The committee has again urged a collaborative approach between the Department of Water and Sanitation and the Department of Cooperative Governance and Traditional Affairs to ensure comprehensive alignment across the water value chain and to safeguard access to water as a foundation for socio-economic development.

Regarding Lepelle Northern Water, the committee welcomed improvements in governance and operational performance. The entity achieved an overall performance rate of 90% against its planned targets. Considering the governance and operational challenges experienced in previous financial years, the committee encouraged the board and senior management to continue prioritising liquidity and the overall financial health of the organisation.

While revenue collection has improved by 11%, the committee remains concerned about the impact of municipal debt on the financial sustainability of the entity. Municipal debt owed to Lepelle Northern Water has increased to R1.36 billion, which remains a serious concern. The committee reiterated that municipal debt to water boards requires urgent attention to ensure the sustainability of both the water boards and the broader water supply system.

Regarding Overberg Water, the committee emphasised the need for the entity to develop a clear growth strategy to expand its revenue base and ensure long-term sustainability. The committee welcomed several initiatives aimed at improving revenue generation, including plans to secure additional industrial customers and farmers, as well as the management of wastewater treatment works on behalf of municipalities and commercial clients.

The committee also noted positively the clean audit outcome achieved by Overberg Water. It maintained that sound governance and strong financial management form a critical foundation for institutional effectiveness and improved service delivery.

Meanwhile, following legal advice, the committee resolved to give the National Economic Development and Labour Council (NEDLAC) 14 days to make a submission on the Water Services Amendment Bill [B24 – 2025]. This follows a request by NEDLAC for the committee to allow the Department of Water and Sanitation and NEDLAC additional time to engage on the Bill.

The committee believes that the three months requested by NEDLAC would be impractical and would unreasonably delay the consideration of the legislation.