The escalating Lesedi Local Municipality’s (“LLM”) debt has prompted Rand Water to reduce the bulk potable water supply by 20% due to its failure to honour several scheduled payments.

The decision to reduce water supply to the municipality follows months of deliberation between the two parties.

To date, the LLM owes Rand Water R27 710 000. 00 (Twenty-Seven Million, Seven Hundred and Ten Thousand Rand).

On 14 April 2026, Rand Water formally issued a notification of its intention to reduce potable bulk water supply to the municipality which would be effective 30 days after its issuance.

In part, this notice was intended to:

• Explain the reasons for the proposed water supply limitation;
• Remind the municipality of its legislative and contractual obligations;
• Provide the municipality with ample time to notify its customers and make alternative arrangements to supply water should the restriction exceed 24 hours; and
• To afford the municipality an opportunity to make representations prior to the implementation of the water supply reduction.

Following the issuance of the Notice, the municipality requested Rand Water to reconsider the implementation of the proposed water supply reduction. The entity carefully considered the request, however, the municipality failed to make payment towards the outstanding DSA instalment.

As a result, on 17 June 2026, Rand Water was compelled to implement the potable bulk water supply reduction as the two parties could not find an amicable solution.

The decision to reduce the bulk potable water supply by 20% was necessary to prevent further escalation of the municipality’s debt that has been accumulating due to its failure to fulfil the signed Bulk Water Supply Contract (BWSC). Although Rand Water had on many occasions held the Debt Settlement Agreement (DSA) meetings, the municipality failed to make payments towards the outstanding debt.

This situation is highly intolerable as it poses a threat to Rand Water’s medium and long-term financial sustainability. It is important to mention that Rand Water operates without any form of financial allocation from the national fiscus, this means that the entity relies solely on revenue collected from its customers, primarily municipalities, to fulfil its legal obligations.

It is important to emphasise that the organisation will not allow a situation where its financial stability is placed at risk because of defaulting municipalities. Financial sustainability will ensure that Rand Water continues fulfilling its legal obligation.

Rand Water remains committed to serving its customers and ensuring long-term provision of potable bulk water supply to ALL its customers with the corresponding duty to pay for the service.