Water use rights as an estate asset : an examination of the valuation and transferability of water use rights

Abstract

The main purpose of the National Water Act 36 of 1998 is to provide for fundamental reform of the law relating to water resources in South Africa. Section 3(1) of the National Water Act 36 of 1998 (NWA) stipulates that the national government, as the public trustee of the nation's water resources, must ensure the protection, use, development, conservation and management of water. Water must also be controlled in a sustainable and fair manner, to the advantage of all persons and in accordance with the national government's constitutional mandate. Subsection (2) stipulates that the Minister is ultimately responsible to ensure that water is allocated and used in a fair manner, for the benefit of the public interest, while promoting environmental values. Subsection (3) further stipulates that the national government also has to regulate the use, flow and control of all water in the Republic. These provisions of the NWA gave birth to the concept of public trusteeship in the South African law. The NWA provides for a number of different water us rights; from water use rights for domestic purposes to water use rights for the purpose of agriculture. Considering the extent of the study of all the water use rights that exist within the provisions of the NWA, this research will focus on licensed water use rights intended for agriculture. In this study it will be determined whether these licensed water use rights form part of a person's estate. Furthermore, it will also be determined whether these rights are transferable and whether a value can be attached to these rights in the estate of a person.