Supreme Court confirms water rights can be transferred
The Supreme Court of Appeal (SCA) has ruled that water rights holders are entitled to transfer such rights, in accordance with the National Water Act (NWA), and that the trading in such rights is not unlawful.
This follows three appeals, including by the South African Association of Water Users Associations, against a judgment by the Pretoria High Court in June 2020 that water use rights cannot be transferred.
The court heard three separate applications where the applicants sought a declaratory order contending for a proper interpretation of Section 25 of the NWA relating to the transfer of water use rights.
The Pretoria High Court dismissed the applicants for a declaratory order on the correctness of a circular by the Department of Water and Sanitation (DWS), which was published in January 2018, in which the department determined that water use entitlements could not be transferred.
Agri SA, which footed the legal costs for two of the three applicants against the judgment, says the SCA ruling has enormous significance for the agriculture industry, since it has caused much confusion.
Agri SA Natural Resources Centre of Excellence head Janse Rabie explains that the ability to legally transfer water use entitlements is vital, particularly for the irrigation sector.
The DWS has not yet confirmed whether it will appeal the SCA ruling.
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