The portfolio committee on water and sanitation has called for written submissions on the National Water Amendment Bill. This article attempts to summarise the main concerns from the agriculture sector’s perspective on the Bill.

Curtailment of water rights

The proposed rules regarding the curtailment of water rights are rather vague. The Bill provides that water rights can be reduced if producers do not use the entirety of water allocated to them, but it does not explain what is meant by ‘failure to use’. Agriculture is highly variable, with rainfall, crop rotation, and market conditions all affecting  water use. Without  clear criteria, there is a risk of unfair reductions.

Agbiz suggests in its written submission that curtailment should only happen after several consecutive years of unjustified underuse and with proper consultation. “Temporary or partial non-use should therefore not, in itself, constitute  grounds for reducing an existing lawful water use.”

Licence renewals and trading ban

The Bill allows water licences to be extended for six months while renewal applications are processed.  While this is helpful, it can be argued that renewals should be automatic if applications are submitted on time. The proposed period of six months may be too short, as the Department of Water and Sanitation itself is often responsible for delays. A longer timeframe would bring more certainty.

The Bill proposes banning the trading of water rights, overturning Constitutional Court rulings that allowed transfers with compensation. Agbiz argues in its submission that trading helps manage water variability and encourages investment in water-saving technologies. Without compensation, there will be less incentive to conserve water, and producers will instead use their full allocation to avoid losing rights. “By removing the holder’s ability to be compensated,  it could serve as a perverse disincentive to use water efficiently.”

Effect on the agricultural sector

The Bill introduces blanket bans on farming, forestry, and mining in certain water source areas, including a 32m setback from watercourses. These provisions duplicate existing environmental laws and could unfairly penalise those already operating legally. Agbiz calls for a risk-based approach rather than blanket prohibitions.

Orchards, vineyards, and forestry require a secure water supply for five to 25 years. If licences are reviewed or withdrawn mid-cycle, users could lose millions in sunk investments. Agbiz insists that transitional provisions and compensation are essential to protect these livelihoods.

The Bill allows the minister to reallocate water between provinces or sectors. Agricultural producers  fear this could reduce their legal entitlements without clear rules or appeal processes. Agbiz calls for transparent procedures, public participation, and safeguards to ensure fairness.

The Bill prioritises redress for past racial and gender discrimination in water licensing. While supporting transformation, Agbiz warns that simply reserving water volumes without practical guidance could lead to underuse and harm food security. Rather, the Broad-Based Black Economic Empowerment Act, 2003 (Act 53 of 2003) and the Agriculture and Agro-Processing Masterplan should be utilised to ensure transformation creates sustainable businesses.

The repeal of section 33 of the current Act means that unregistered existing lawful use rights or ELUs, often held by small-scale producers and communities, could be extinguished without compensation. Agbiz argues that this raises constitutional concerns and calls for transitional arrangements and fair compensation. The strict 90-day registration deadline is also unrealistic and unfairly punitive.

Overall message

The farming sector supports sustainable water management but believes the Bill, as drafted, creates uncertainty, discourages investment, and risks undermining food security. Agbiz urges government to refine the amendments with clearer definitions, risk-based approaches, transitional safeguards, and alignment with broader agricultural and transformation  policies.

By Annelize Crosby, head of legal intelligence, Abgiz