New Water Laws Are Coming—Here’s What They Mean for Service Providers

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South Africa’s water crisis is no longer a future concern, it’s a current emergency. Taps are running dry in parts of Johannesburg, and wastewater plants are failing across the country. In response, government has fast-tracked two new water laws to stabilise the sector and strengthen accountability:

• The Water Services Amendment Bill (already introduced to Parliament)

• The National Water Amendment Bill (soon to follow)

President Cyril Ramaphosa has warned that water shortages could be worse than load shedding, making these reforms urgent and essential.

What the Water Services Amendment Bill Will Change

This Bill introduces licensing, stricter oversight, and private sector involvement to ensure that water services are professional, sustainable, and accountable.

• Licensing Now Mandatory to Provide Water Services

  • Any individual or company that wants to operate as a water services provider must apply for and receive a license from the Department of Water and Sanitation (DWS).

  • Licensing rules and conditions will be set out in regulations once the law is enacted.

  • Existing providers must comply within 12 months of the regulations being published.

• Municipalities Face Stricter Approval Processes

  Municipalities can no longer approve just anyone to provide water services. They must:

  • Review the provider’s financial and environmental sustainability

  • Confirm the provider meets license requirements

  • Ensure proper financial disclosure and transparent reporting

  • Choose the right model for service delivery under the Municipal Systems Act.

This means fewer fly-by-night contractors and more credible, accountable service providers.

• Fail to Comply, Lose Your Licence

  If a licensed provider fails to meet their obligations, the DWS can:

  • Issue a compliance directive

  • Revoke the licence if failures persist

  • Require the municipality to appoint a new licensed provider and ensure temporary water supply while a replacement is found.

• What’s New for Water Boards?

  The Bill also revamps how water boards (the entities that supply bulk water and sanitation services) are created, merged, and managed. This aims to streamline service delivery and allow water boards to respond quickly to national needs or emergencies.

  • The Minister of Water and Sanitation can establish, rename, merge, or change the area covered by a water board without full provincial consultation, only public notice will be required.

  • New functions for water boards include:

    • Managing and developing bulk infrastructure

    • Providing water to municipalities, large users, or directly to consumers (with approval)

    • Managing sanitation services and wastewater infrastructure.

• Stronger Government Oversight

  The Minister will gain the power to:

  • Intervene if any water institution, whether a municipality, board, or private provider fails to perform.

  • Issue binding directives to correct or improve operations.

  • Ensure water services are delivered reliably and safely.

These reforms, combined with Operation Vulindlela’s broader infrastructure agenda, are expected to professionalise the water sector and unlock private sector investment.

Why This Matters for Service Providers and Professionals

If your business or clients are involved in infrastructure, utilities, or municipal contracts, these changes will directly impact:

• Eligibility to bid for water projects

• Licensing and compliance requirements

• Contract conditions and performance obligations.

With stricter oversight and compliance enforcement, only licensed, financially sound, and technically capable providers will be allowed to operate.

What’s Next?

• The Bill is currently before Parliament, with supporting regulations to follow.

• The National Water Amendment Bill, which focuses more broadly on the management of national water resources, will be tabled next.

• Existing service providers must begin preparing for license applications now.

Final Word

Water is no longer just a service, it’s a national emergency. These new laws represent a major shift toward professionalising and regulating the water sector. For businesses in the accounting, infrastructure, and compliance space, now is the time to help clients understand their obligations, prepare for licensing, and ensure they’re part of a compliant, sustainable water supply solution.