ABSTRACT
To understand south africa's reforms in the water sector, it is necessary to examine them in their historical context. 1 Under the apartheid government, the development of government irrigation schemes was designed primarily to address the “poor white” problem and to resettle former military personnel. The policy was designed to provide white farmers with an opportunity to make a living while contributing to South Africa's food economy. This was achieved at great expense to the government, in that few schemes operated on a cost-recovery basis. In fact, many did not even recover operating and maintenance (O&M) costs. In addition to developing its own schemes, the state provided large capital subsidies to irrigation boards, statutory bodies set up under the Water Act of 1956 to serve the interests of groups of white irrigation farmers. Capital subsidies were also made available to private irrigators for the development of private irrigation schemes.
