Developing Markets for Watershed protection services and improved livelihoods: a diagnostic for South Africa

Due to the progressive developments around catchment management and the ambitious goals
set out by the National Water Act (Act no. 36 of 1998) (DWA&F, 1997a), the Water Service
Act No. 108 of 1997 (Annon, 1997), and the Water Resource Strategy (2002), coupled with historical inequalities and discrepancies in the quality of livelihoods, South Africa was
selected as one of the eight case study countries for potentially piloting markets for watershed
protection services and improved livelihoods. This diagnostic presents the findings of a scoping study conducted under phase1 of the above-mentioned global initiative for the actionlearning
site, South Africa. The diagnostic is set out as follows:
Section 2 reviews the nature of markets and market-based instruments,
Section 3 and 4 introduce the context for South Africa’s watersheds including policy
regimes, water-land linked management practices and key stakeholders,
Section 5, 6, 7 and 8 introduce watershed services in South Africa, key opportunities
and constraints, needs and relevant projects.