Is your water legal?

Water scarcity is a growing crisis across South Africa. In the gaps left by service delivery failures, a shadow industry of unlicenced water sellers and transporters has emerged, exploiting desperate communities and undermining the law. This guide helps you identify illegal operators and understand what the law actually says.

The legal framework

South Africa's water is not a commodity that anyone can freely sell. It belongs to all South Africans, held in public trust by the state. According to the National Water Act 36 of 1998, groundwater – including borehole water – is classified as a national resource. No individual or company owns it. Any commercial extraction, sale, or distribution requires a Water Use Licence issued by the Department of Water and Sanitation (DWS). Selling water without this licence is a criminal offence.

The Water Services Act 108 of 1997 also states that water service providers must be authorised by or contracted with a Water Services Authority – typically your local municipality. Operating as an informal water vendor without this authorisation is illegal and punishable by fines and/or imprisonment.

What about charging for transport?

Transporting water and charging a delivery fee is permitted, but only if the transporter holds a valid municipal licence or is operating under a municipal contract. This is a critical distinction: you may charge for the labour and logistics of delivery, but you may not charge for the water itself unless you are a licenced water services provider. Unlicensed transporters who charge per litre, per tank, or per delivery as a water-sale arrangement are operating illegally.

The bottom line

Ultimately, borehole water is not “free water” that landowners can sell to the public. Extracting it commercially and selling it – even from your own property – requires a Water Use Licence. The state owns the resource; the landowner only controls the infrastructure.

Trucks: Red flags

• No visible municipal or DWS markings/stickers. Legitimate contracted water tankers operating for a municipality will display the municipality's logo, a contract reference number, or official signage. A plain, unmarked, or privately branded tanker delivering to public areas is a warning sign.
• No operator licence or permit displayed. Lawful water transport operators must carry documentation on the vehicle. If the driver cannot produce a municipal contract, a water use licence, or a transport permit on request, the operation is likely illegal.
• No roadworthy certification or valid vehicle licence disk. Unlicensed operators often cut corners on vehicle compliance too. An expired or missing licence disk signals an operator is possibly operating outside the formal system.
• Tank is dirty, rusted, or appears to have previously carried other goods. Non-food-grade or repurposed tanks are a hygiene and health hazard. The absence of visible cleaning hatches or food-grade lining is a red flag for both legality and safety.
• No contact details or company name on the vehicle. Legitimate businesses identify themselves. An anonymous truck with only a cell number is a classic sign of informal, unregistered operation.

The sellers: red flags

• Selling water by the litre or by the tank with no receipt. Licenced operators issue receipts. If a transporter refuses or "doesn't do receipts," this suggests they are hiding income and operating outside the tax and licensing system.
• Charging per litre from a borehole source with no Water Use Licence. Ask directly: "Where is this water from?" and "Do you have a Water Use Licence?" A legitimate operator will answer confidently and produce documentation. Evasion or aggression is a red flag.
• No VAT number or CIPC-registered business details. Any formal water services provider must be a registered entity. Ask for their business registration number. If they cannot provide it, they are likely unregistered, meaning no tax compliance and no accountability.
• Prices wildly below or above municipal tariffs. Illegal operators sometimes undercut to build market share, or exploit emergencies to price-gouge. Either extreme, combined with no documentation, signals informal and likely illegal operation.
• Cannot name the borehole, source, or water quality testing regime. Legitimate water suppliers know their source and can provide water quality certificates. "It's from a borehole somewhere" is not acceptable for a commercial water vendor.

The water: red flags

Filling from a borehole on private land with no visible DWS licence notice. Water Use Licences must be held on site and available for inspection. If you observe a truck filling from a borehole on private property and the owner cannot produce a licence, report it to the DWS.

• Filling from a municipal hydrant or standpipe without a metre and municipal authorisation. This is theft of a public resource. Municipalities issue standpipe permits to authorised haulers; these should be visible and verifiable.
• Operating late at night or avoiding municipal staff and inspectors. Illegal operators know they are at risk during inspections. Nocturnal, evasive operations targeting informal settlement areas are a consistent pattern reported by municipalities.

Report illegal water activities

If you suspect an operator is selling water illegally, contact any of the following. You do not need to identify yourself to make a report.

• DWS Call Centre: 0800 200 200
• Your local municipality
• SAPS (theft of public resource)
• SA Human Rights Commission if communities are being exploited.