Department of Water Affairs and Forestry

AGRICULTURAL WATER USER ASSOCIATIONS:

GUIDELINE FOR THE ESTABLISHMENT AND OPERATION OF DEVELOPMENTAL WATER USER ASSOCIATIONS

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TABLE OF CONTENTS 1. Introduction ................................................................................................... 3 2. Definitions ..................................................................................................... 3

2.1 Acronyms and Abbreviations used in this document ................................ 4 3. Purpose of this document............................................................................ 5 4. Functions of WUAs ....................................................................................... 6

4.1 Water functions ......................................................................................... 6 4.2 Societal functions ...................................................................................... 6

5. Issues that precede the establishment of Water User Associations ....... 7 5.1 Information sharing and awareness raising .............................................. 7 5.2 The facilitation of a community visioning process ..................................... 7 5.3 Financial and technical support ................................................................ 9 5.4 Proposal requirements ............................................................................ 11

6. Operational issues ...................................................................................... 12 6.1 The business plan ................................................................................... 12 6.2 Skills development in WUAs ................................................................... 13 6.3 Mentoring ................................................................................................ 15 6.4 Financial viability of WUAs ..................................................................... 15 6.5 Viability and entitlements to water .......................................................... 18

7. WUAs and Co-operative Governance ....................................................... 19 7.1 Support mechanisms .............................................................................. 20 7.2 The impact of other water institutions ................................................... 200 7.3 Opportunities for reconstruction and development ................................. 21

8. Further issues to be addressed ............................................................... 211 9. References ................................................................................................ 222 10. Model Constitution of Water User Associations ...................................... 23

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1. Introduction The first tier of the water management structure is that of the Minister and Department of Water Affairs and Forestry that have overall responsibility for effective water management and development of the National Water Resource Strategy. The Ministry, in consultation with its stakeholders has divided South Africa into 19 water management areas, according to the country’s watershed boundaries. Over the next 10-20 years, each area will have an established and operational Catchment Management Agency (CMA) to ensure equitable, efficient and effective protection, use development, conservation, management and control of the water resources in its area. CMAs will operate as statutory bodies under a Board appointed by the Minister and will run as non-profit organisations. The new pricing strategy implemented by the Act will support the establishment of these agencies and, as they are rolled out across the country, the function of the Department will alter into that of a regulatory, macro-planning and auditing body. As the second tier of the water management structure, the objectives of CMAs are to manage the water resources within a defined water management area and to involve the stakeholders in theprotection, use, development, conservation, management and control of water resources. A Water User Association (WUA) is the bottom tier of water management structures. A proposal to establish a WUA goes through a consultation and review process. If the proposal is acceptable, the Minister, through a Government Gazette Notice, formally establishes a WUA as a statutory body under Section 92 of the Act. 2. Definitions A WUA is a co-operative association of individual water users with water entitlements under sections 21 and 22 of the National Water Act, 1998 who wish to undertake water-related activities for their mutual benefit. The broad role of a WUA is to enable people within a community to pool their resources (money, labour and expertise) to more effectively carry out water-related activities. The establishment of a WUA must also assist in achieving the purposes of the Act. WUAs, firstly, enable members to benefit from addressing local needs in terms of local priorities and resources. Secondly, they provide a mechanism through which a CMA (or the Minister) can devolve the implementation of aspects of the Catchment Management Strategy to the local level. There are crucial points to note about the formation of WUAs. • A WUA is a legal 'person', just like a company or CC. This means it can sign

contracts and agreements, sue people who do not pay and be sued by its creditors. A WUA can obtain funds by way of levies which members are required to pay.

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• A WUA is able to control water use within the range of its constitution and it can take action to remedy any problems that may occur. The Minister can give directives to the WUA for remedial action when required in the public interest.

• A WUA has fixed political accountability, in the form of its Management Committee, which is responsible to the Minister for the way it operates.

WUAs mostly are established for four main purposes. Firstly, the taking and using of water for irrigation purposes on a commercial or subsistence scale where licenses or general authorisations are in place. This could also include as a component of the scheme, the supply of water for domestic, industrial and municipal use. Secondly, for stream flow reduction activities. Thirdly, for the treatment and disposal of effluent and waste. Fourthly, to control the use of water for recreational and/or environmental purposes. A WUA may be established for a combination of these water uses. WUAs differ enormously from one another in their geographical scale of operation. The reason is that the size of member landholdings can differ substantially from one area to another. In general smaller WUAs perform better institutionally while larger WUAs have advantages of scale and tend to be more financially viable.1 Over the last twenty years, many countries have transferred the management of state-managed irrigation systems to users2. Though many tried for complete management transfer and complete state withdrawal, there is now growing evidence that continued, though significantly reduced state support to WUAs, is needed, especially for developmental WUAs3. In South Africa, it is hoped that user-managed water schemes will become more efficient than state-managed water schemes. For users, partnering with the state in the management of WUAs, means access to state resources such as grants and subsidies, as well as influence over the management of water resources at a higher level than that of the WUA. Members of WUAs and government officials should see WUAs as an interface between the state and water users rather than an organisation that serves the interests of one party only. In the case of developmental WUAs, collaborating with the state can provide access to knowledge through state sponsored capacity building efforts. This can lead to increased independence in the long term, as members become less dependent on external support for the management of their service.

2.1 Acronyms and Abbreviations used in this document DWAF Department of Water Affairs and Forestry

1 See Subramanian, A., Vijay Jagannathan N., Meinzen-Dick, R. (1997): User Organisations for Sustainable Water Services. Washington: World Bank Technical Paper no. 354, pg. 32, and Vermillion, D.L. (1997): Impacts of irrigation management transfer: A review of the evidence. Colombo, Sri Lanka: International Water Management Institute Research Report No 11, page 2. 2 This process is known as Irrigation Management Transfer, or IMT. 3 Developmental WUAs mainly refers to those users with collective license located in a single scheme and/or those users who wish to apply for a general authorization as emerging farmers. 4

CEO Chief Executive Officer CMA Catchment Management Agency CMS Catchment Management Strategy WMA Water Management Area WUA Water User Association Guide 1 CMA/WUA Guide Series - Establishing a Catchment

Management Agency Guide 2 CMA/WUA Guide Series - The Catchment Management

Agency as an Organisation Guide 3 CMA/WUA Guide Series - Establishing a Water User

Association Guide 4 CMA/WUA Guide Series - Public Participation for Catchment

Management Agencies and Water User Associations Act National Water Act (Act 36 of 1998) Minister Minister of Water Affairs and Forestry ch Chapter in Act s Section in Act 3. Purpose of this document The central goal of this document is to clarify common and specific policies on the empowerment of the poor through agricultural WUAs. This has two broad categories, the support required before the establishment of developmental WUAs and the support required to ensure their continued operation. Three sectors can provide poverty relief through agricultural WUAs. Irrigation Boards. There are approximately 265 irrigation boards mostly serving commercial agriculture. These are required to transform into WUAs in terms of Act and fulfil the functions of Water Management Institutions. These organisations have to be made more inclusive and representative by including nominations from emerging farmers and farm labourers onto the management committees of the new WUAs. Existing competence can create capacity-building opportunities for these groups. Irrigation Schemes. There are approximately 400 irrigation schemes in the former homelands. Production is currently low, technologically inappropriate and inefficient in most schemes and many have collapsed altogether. The Department of Agriculture and Land Affairs has a revitalisation programme for several of these schemes, through a participatory visioning process with farmers. These transformed organisations are in the process of being registered as WUAs. Unemployed rural South Africans. This very large category has no access to productive water or developed systems. For this group, the establishment of new WUAs may provide enhanced household food security or, with adequate support, entrepreneurial aspirations can be furthered. The issue of tying WUA membership to water entitlements needs to be explored further.

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4. Functions of WUAs The Act sets out the framework for the management of water resources, which includes the establishment of water management institutions, such as CMAs and WUAs. This section looks at how WUAs fit into the structures of water resource management and its societal role.

4.1 Water resources management functions A CMA is responsible for water resources management over an entire Water Management Area. It has a Governing Board representative of stakeholders from this wide region. In contrast, a WUA will represent a much smaller scope of interest, usually a sector of water users in a confined geographical area. A CMA will prepare a Catchment Management Strategy to address water resource issues over the whole Water Management Area. The Catchment Management Strategy will constitute a framework within which the water resources will be managed in the Water Management Area. In turn, WUAs will provide a local institutional structure through which the Catchment Management Strategy can be implemented at a local level. The Management Committee of a WUA is directly accountable to its members. It is more broadly accountable to the Minister for carrying out its activities within the bounds of its constitution and in accordance with the provisions of the Act. The Minister may delegate overseeing the operation of a WUA to the relevant CMA or DWAF Regional Office. In that event, a WUA would be accountable to that CMA or Regional Office.

4.2 Societal functions WUAs may be formed to overcome poverty through joint water use activities, such as water supply, treatment of waste or environmental and recreational management and for furthering capacity to address equity in water allocations.. Cultural bonds may foster mutual ties of which such an institution can be built and such natural social cohesion forms a strong basis upon which to form an institution. Equally, social fragmentation, generated by the past, may destabilise institutions if communities are forced to co-operate within the context of one institution. A natural unit for base-level WUAs is an institution that has been established to manage a water service. In addition, individuals who can interact with each other on a day-to-day basis may form a more natural unit for a base-level WUA than structures in which communication is limited by geographical reach4. This is because they can reach each other on foot and can communicate verbally to each other. Furthermore, a WUA has natural strength if there is a commonality of vision based on the shared views of its members. The pursuit of social cohesion is a long-term rather than a short-term strategy. In terms of WUA policy, this means that while base-level institutions may be formed

4 Although large distances or infrequent communication do not have to imply the existence of a weak organisation 6

on the basis of a self-defined group, one task of umbrella bodies will be to foster co-operation among these base institutions over the long term. A natural unit for umbrella structure is an institution devoted to the management of macro-infrastructure common to numerous smaller WUAs, or to the allocation of the resource along a stretch of river. Policy already exists which makes provision for such a structure in the form of the envisaged catchment management committee5. In other words, an umbrella structure manages a common resource. At this higher level of operation, daily communication is usually no longer possible. This will in most cases, be compensated by regular meetings between groups making use of a system. 5. Issues that precede the establishment of Water User Associations The statutory process to establish WUAs is laid down in Guide 3, 1999 but certain requirements may be more difficult to fulfil in developmental WUAs. This includes the facilitation of a community development visioning process, the financial and technical support from government and other players necessary to establish WUAs, the nature of WUA constitutions and business plans to be submitted to the Department.

5.1 Information sharing and awareness raising The Act requires consultation during the WUA establishment process. A typical characteristic of the poor is that they are located in less favourable areas, cut off from the mainstream of communication and are therefore not well informed about events outside their daily lives. Therefore, deliberate and appropriate efforts need to be undertaken before WUAscan be established. Otherwise the potentially positive role of WUAs as instruments of empowerment and poverty alleviation could be overlooked. Potential beneficiaries need to know about the Act, what it means to them and the support available from the Department and other departments and organisations. One way to do this is the development and implementation of an interdepartmental communications strategy, with DWAF as the lead agent. Without an appropriate6 communications strategy, it is only the already well informed who will opt to establish a WUA.

5.2 The facilitation of a community visioning process WUAs are part of the implementation of the catchment management strategy (CMS) in its area, under the control of the CMA. Therefore, the WUAs will be involved in the development of this strategy. However should vision building precede the development of a catchment management strategy, it will provide an entry point to such a strategy. either should be informed what strategy has been adopted or be involved in the development of the CMS.

5 Department of Water Affairs and Forestry, 2001b: 5 - 6; Department of Water Affairs and Forestry, 2001c: 8 -9 6 Such a strategy needs to take account of the means of communication used by the poor, i.e. it should not depend on the use of Internet, television or newspapers. 7

The first step in establishing a WUA is that a group of water users with common interests gets together, or the Department brings them together or they are together in the form of an existing irrigation board. This group then needs to present its vision to the community and facilitate the consultation and development process. Members interested in joining the WUA, and other stakeholders, should be given the opportunity to contribute as follows: In regard to representivity: • The sectors of society, or categories of water users, stakeholders who wish to

be represented on the WUA. This is especially the case where a large, multisectoral WUA is to be established, or where there are fears that the WUA may be dominated by one sector.

• Suggestions for non-discriminatory membership of the WUA. • Suggestions for how stakeholders see appropriate race, gender and

geographic representation to be achieved on the WUA’s Management Committee.

In regard to the constitution of the WUA: • Suggestions on the specific needs the constitution should address. • Suggestions on the initial functions that the WUA should adopt. In order to have this kind of input, the facilitator, DWAF or Irrigation Board will have to explain the following factors: • Advantages. The long-term benefits of food security, job opportunities and

developmental aid. Short-term benefits include grants, subsidies and capacity building initiatives that are on offer from the various departments for their benefit;

• Flexibility of opinion. The facilitation process must accommodate differences of opinion and strive for consensus building among participants. (Though consensus could not be necessarily achieved, it would assist in avoiding social fragmentation leading to project collapse at a later stage);

• Information sharing. Facilitators must explain the Act, its aims and their role and function as a WUA.

• Agricultural impacts. Different operations and maintenance functions in agricultural production must be debated to foster a spirit of joint and participative decision making. This would provide an opportunity for discussing the pros and the cons of each option while also airing the various community views. Each type of production method and irrigation or other technology selected has an associated social organisation of production and technical skills requirements, and the facilitator needs to make the community in question aware of these consequences.

• Representivity. The Act calls for representivity and facilitators must ensure that all interest groups are represented and that one group does not dominate. Gender issues must also be addressed, particularly as women are involved in water matters.

• Auditing. Facilitators should carry out an audit of existing skills to maintain long-term sustainability, identify training needs and produce a skills development plan.

• Local Inputs. Information regarding all water uses in the area, local needs, indigenous knowledge systems and cultural capacities can be used and built

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on. In some cases indigenous knowledge and cultural practices about soil and water conservation techniques or tillage practices can form part of the organisation envisaged operations..

Capacity for this facilitation exists but the responsible authority will have to apply stringent criteria to the selection of appropriate facilitators who understand the geographic, environmental, national and local requirements of WUAs. The facilitation time required depends on the levels of poverty and the strength of the historical relationship that the prospective members have with support institutions. A relatively long period of community vision building is required in most cases to establish developmental WUAs. This equally applies to irrigation schemes in the former homelands where capacity building for user management was extremely restricted, as well as to areas that have not been fortunate enough to receive support for irrigation development in the past. In these schemes, the technical and social requirements of collective water management still need to be learnt. Irrigation boards have thrived on institutional and social arrangements that do not have a place in the current dispensation. Therefore, to transform them in a manner that redresses past imbalances (e.g. adequate community, gender and racial representation and equitable access to water) also requires effort. Cooperative efforts exist between Irrigation Board members and the DWAF in bringing about the desired transformation for the benefit of all. Such endevour requires the support of all involved especially the large scale farmers who can contribute to the success of the implementation of the Act without seriously compromising their bottom line. Two points can be deduced from the above facilitation process: • it is necessary for the Department to devote funds to the facilitation of

community vision building around its water use; • it is necessary for the Department to consider the appointment of appropriate

facilitators who are trusted both by the communities they serve and by the Department whose objectives they are appointed to further.

• Commercial farmers need to be part of the solution and not be alienated.

5.3 Financial and technical support From the above, it is clear that external financial and technical support will be required to ensure that the interests of the poor are represented in WUAs. In terms of technical support, assistance is needed both for the water management system and for agricultural production. Both aspects are integral to the functioning of the institution, as the functioning of the one cannot be sustainable without the functioning of the other. There is a need for the Department of Water Affairs and Forestry and the Department of Agriculture and Land Affairs to co-operate in all ways in the

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facilitation leading to the establishment of viable and sustainable WUA drawing in from the expertise and capacity of the old Irrigation Boards. The following water-related matters require attention: • Provision of trained facilitators that can take the community to the point where

it can form a 'group of entitled water users' as envisaged by the Department. • Legal support in preparing the submission (constitution) of the WUA for

establishment approval and recognition; • Technical support for the preparation of a water management plan/business

plan that includes the operation and maintenance of the water distribution system;

In terms of financial support, The Act provides conditions under which the Minister might provide financial assistance for the alleviation of poverty that is the result of past racial and gender discrimination. This provision is a mechanism through which WUAs for the empowerment of the poor might find financial support. Guide 4 on Public Participation states clearly that good public participation costs money and that the Department's budget should allow for expenditures such as conducting meetings and workshops, and producing, translating, printing and distributing written material for CMAs and WUAs. Less money is likely to be required for the establishment of WUAs due to their more localised nature and the establishment requirement of proof of their financial viability. The Act calls upon the Minister to publish the formation of a WUA and call for comments. The Minster may recover all costs incurred from the WUA or WUA applicants. Unless this is done under the discretion of the Director General in which he assists such establishment in order to achieve the purpose of the Act. He or she is not required to call for comments if it can be shown that there has been sufficient consultation. The transformation of irrigation boards to WUAs is more likely to benefit from extensive consultation which will be part of CMA establishment process and will contribute to more representative water management institutions capable of addressing historical imbalances. This consultation could also remove the possibility of having to pay for a separate public participation process for establishing WUAs. In the case of the revitalisation of ex-homeland irrigation schemes and the establishment of new WUAs by previously disadvantaged communities, both the Department (Eastern Cape & Northern Cape) and the Provincial Department of Agriculture (Limpopo) are able to fund the process. DWAF has a financial assistance policy in place, to assist emerging farmers in conducting feasibility studies. In support of this policy, the Directorate Catchment Management will facilitate a process to develop further criteria for funding institutional building within the context of WUAs.

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In addition, agricultural extension support is needed. This needs intermittent but ongoing assistance of appropriately skilled extension specialists. The length of time of this support depends on the complexity of the constitution and business plan being developed. The simpler the business plans and constitutions the more time can be devoted to community reconstruction, mobilisation and vision building. To get WUAs up and running will require the irregular intervention of appropriately skilled facilitators/mentors until the WUAs are able to manage the process themselves.

5.4 Proposal (constitution) requirements When all facilitation and consultation has taken place, an establishment constitution for a WUA can be prepared. Potential members of the WUA, as well as other stakeholders, should have the opportunity to contribute: • Suggestions for the WUA’s proposed name and area of operation • Suggestions for the WUA’s proposed activities based on local knowledge • Suggestions on the content of the WUA’s constitution • Verification of the draft constitution by members and other key stakeholders

so that it can be submitted to the Minister as enjoying stakeholder support. • Propose members or categories of members of the WUA, especially where a

large, multisectoral WUA is to be established, or where there are fears that the WUA may be dominated by one sector, race and/or gender

• Suggest how to achieve non-discriminatory membership of the WUA • Suggest how to achieve appropriate race, gender and geographic

representation in the membership and Management Committee 5.5 Model constitution of WUAs Section 93 of the National Water Act requires a WUA to draw up a constitution for which a model constitution is provided in Schedule 5. (See attached). This provision may appear difficult to fulfil in a poor community that lacks both language and legal skills. But the basics are not complex if tackled adequately with the assistance of a facilitator. Motivations can be provided to depart from the model where required to meet a WUA’s specific needs. The ‘Guide on the Transformation of Irrigation Boards and Certain Other Boards into Water User Associations’, 1999 (available from DWAF) also provides some useful guidance on the preparation of WUA constitutions. Guide 3, 1999 lays out the basic requirements that must be in the constitution: • The name of the WUA • Details of the main function of the WUA and any other functions it may have. • How new members are admitted to the WUA and how they are assessed to

be able to join. How members leave or are asked to leave the WUA. Such requirements must be non-discriminatory and conform with the principles of the Constitution.

• The voting powers of members. The voting system adopted must be non-discriminatory and be fair and reasonable to members.

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• How Management Committee members of the WUA are elected. Where there are a large number of members, such as with irrigators, an election process will probably be required. Where the WUA is made up of several representative groups a nomination process may be more appropriate. A combination of both approaches is also possible.

• How staff (if any) are employed by the WUA. In some cases a WUA will not require the appointment of any staff. If a CEO is required the Minister’s approval of the proposed salary is required (Item 3 of Schedule 4).

• How the WUA gets loans. • What members of the WUA are financially responsible for. • How the WUA can disestablish, if it becomes necessary WUAs will differ from each other in terms of the poverty ranking of members and the assets at the disposal of the members. Such differences will also require different levels of complexity of the adopted constitution. 6. Operational issues This section deals with the requirements for operational sustainability of WUAs after establishment. It includes the requirements of WUA business plans, the awareness, capacity and skills needed to manage a successful WUA, the requirements for financial viability of WUAs and entitlements to water based on which the WUA is established. Public participation can contribute to operational problem solving and to mutual support but it must be noted that funding for this type of participation must be paid for by the WUA. The inputs required from the Department to ensure the development of sustainable institutions for empowerment are discussed separately in each of these sections. Due to the unequal nature of the three categories - irrigation boards, ex-homeland schemes and new WUAs for poverty alleviation, the support needs to be structured appropriately.

6.1 The business plan Business plans tell the communities how their institution will operate in practice and assist DWAF in monitoring the operation. The Act requires WUAs to prepare a three-year business plan within six months of starting and to update it at least once a year. The preparation of the business plan, which is a legal document enforceable under law, will require the intervention of skilled facilitators that can not only explain the requirements but also the penalties involved in not meeting them. The legal requirements for business plans are set out in Schedule 4 of the Act and must include the following. • objectives of the institution; • outline overall strategies and policies that the institution is to follow to achieve

the objectives; • statement of the services which the institution expects to provide and the

standards expected to be achieved in providing those services;

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• include the financial and performance indicators and targets considered by the board to be appropriate;

• any other information determined by the Minister; • financial targets; • outline the overall financial strategies for the institution including the setting of

charges, borrowing, investment and purchasing and disposal strategies; • forecast of the revenue and expenditure of the institution, including a forecast

of capital expenditure and borrowings; • provide for capacity building amongst its board members and officials; • any other financial information determined by the Minister. Empowerment strategies The existing outlines for business plans have the following provisions that relate directly to empowerment: • The need for financial targets to include reserves to provide for corrective

action to redress the results of past racial and gender discrimination in the use of water resources7;

• The need to improve the accessibility of, and performance standards for, the services provided by the institution;8

• The need to describe how the WUA is ensuring consultations with stakeholders9.

In the case of developmental WUAs, goals relating to broad upliftment initiatives such as employment generation, could be included in the business plan. However, there is no obligation to include such matters. It is therefore proposed that the following additional points are included in developmental business plans: • Employment generation expectations of the community and who this will

benefit; • Plans for capacity building of members; • Willingness and ability to pay user charges amongst members. This needs to

go beyond the forecasted revenue and include the mechanisms that the members have in place to counter problems of non-payment.

6.2 Skills development in WUAs Skills development in WUAs could be viewed as a three-phase process. The first process is a training needs analysis based on comparison between the available skills within the members and the skills required to run the WUA. The second phase is the investigation of how these skills can be acquired and transferred effectively - by whom, at what cost and how long. This role should be played by a facilitator and implemented by the members.

7 NWA, section 24(b)(i), and DWAF business plan outline, under ‘financial arrangements’; 8 NWA, section 24(b)(i), and DWAF business plan outline, under ‘financial arrangements’ 9 DWAF business plan outline, under ‘stakeholder consultations’; 13

The third phase is an analysis of what skills are needed to achieve the objectives of the WUA - this will include the community that is involved in the WUAs activities. Committee training To keep WUAs viable and sustainable will require the continuous availability of certain skills within the organisation. In many cases, some or all of the required skills will be lacking, and therefore training is required in order to empower members to manage their institution. The running of the WUA Management Committee has the same legal requirements as the CMA Board as set out in Schedule 4 of the Act. These include: • The requirement under item 10 to give written notice to board members of

meetings at least seven days before the meeting; • The requirement under item 15 to keep complete and accurate minutes of

each meeting; • Comprehensive and accurate financial reporting as required under item 32; • The preparation of an annual report as required under item 33; This requires a degree of literacy and understanding that may not be present in all members and therefore the following training may be necessary: • Awareness raising – this consists of the clarification of roles played by

individuals serving the organisation as well as the clarification of structures (leadership in the form of the management committee, operational support in the case of larger WUAs, and membership).

• Skills training of individuals appointed to carry out certain tasks such as bookkeeping and financial reporting in the case of the treasurer, administrative skills in the case of the secretary, and financial management, conflict management, report writing and leadership skills in the case of the chairperson;

• Training related to the rights and duties of members of the organisation. This can include training around the accountability of the leadership to its membership in terms of financial transactions and water services management.

Cross-training between different neighbouring WUAs should be encouraged and the sharing of skills/resources between a number of WUAs to develop standard documents of invitations to meetings, common secretariat for minutes keeping and the preparation of the annual report. Broader training A WUA may need training related to the operation and maintenance of the water supply system to continue to provide an efficient service to its members. This can include canal maintenance, pump operation and maintenance, the monitoring and collection of water use charges Other types of skills exist that are crucial to the sustainability of the organisation but do not necessarily fall within the ambit of the operation of a WUA as a WUA. They relate more to the secondary functions of the organisation. These include: 14

• general business skills; • agricultural production skills; • marketing skills. Who is responsible for training? • the responsibility for all training matters relating to the development of a WUA

as an institution fulfilling the statutory requirements from the Act, the operation and maintenance of the water supply system and the awareness of the rights and duties of members should naturally fall with the Department of Water affairs and Forestry or the CMA when in place from its water use charges;

• the responsibility for all training matters relating to the development of agricultural production skills should fall with the Department of Agriculture;

• the responsibility for all training matters relating to the development of business skills should fall with the Department of Trade and Industry

However it is essential that such training be provided as a comprehensive package if WUAs are to function adequately. It is the responsibility of the relevant provincial Irrigation Action Committee to ensure that departmental support is integrated in this way. The above indicates that funds will need to be released by the Department of Water Affairs and Forestry for training in the skills mentioned above10. These funds need to be accounted for in the calculation of the costs of the programme.

6.3 Mentoring Despite the provision of formal training to WUA members, much learning is likely to take place as the WUA finds its feet as an organisation in the early period of its operation. In this period, much benefit can be gained if DWAF can identify a local mentor who is willing to provide backup support to the WUA as and when the need arises. This support could be in the form of solutions with respect to technical problems and advice on water usage and production. Mentors could come from government, parastatals, other water bodies or even local people who understand the nature of the problems that WUAs will face.

6.4 Financial viability of WUAs The institutional viability of WUAs is strongly related to their financial viability. The main source of revenue of Water User Associations is likely to be the collection of water use charges because of services provided to members. Water use charges are based on the Pricing Strategy as published under government Notice 1353 dated November 1999. WUAs must determine their revenue requirement on which water charges of development and use of water works are based. Costs that are lawfully incurred based on carrying out WUA's functions according to the Pricing Strategy may be assessed annually. This becomes a charge on the land(s60). Costs not included

10 The training of a WUA member in these skills should however be made subject to a minimum period of service to the WUA in order to restrict brain drain. 15

in the Pricing Strategy require a special resolution by the members for additional charge and will not be a charge upon the land. The level of these charges, in turn, is dependent on the costs of operating and maintaining the water supply system. Some types of water supply systems are expensive to operate and maintain while others are cheaper but each system has its own unique advantages. Choosing a technology From a poverty alleviation perspective, the cost effectiveness of the system is an overriding consideration. Hence, the establishment of new WUAs that use lower skilled technology is generally preferable11 to the use of more skill intensive technology. In the establishment of new WUAs for poverty alleviation, the choice of technology should be linked to the expected income and skills base of the users such that there is a low risk of indebtedness. In the case of irrigation boards undergoing transformation or ex-homeland schemes, undergoing rehabilitation there will generally be less room for manoeuvre in terms of technology choice. This is because the technology already exists and cannot readily be replaced. However, in instances where there is some room for change in order to lower overall production costs, the sustainability of the institution can be enhanced by introducing such changes. Therefore where production costs can be lowered for emerging farmers on irrigation boards or for farmers working on ex-homeland irrigation schemes due for rehabilitation by introducing lower cost technology, efforts should be made to effect these changes as part of the establishment process of the WUA. This will enhance the financial viability of the institution. Facilitators working with communities can use the following questions as a guide in this regard: (i) is the technology low cost or high cost? (in terms of both capital and

operation) (ii) does its use require little or no training, farmer training or the employment

of a specialist? (iii) was it self-constructed, constructed by a specialist on-site or bought and

brought? (iv) is its power source diesel/electricity or animal/manual or wind? (v) is its purpose labour saving, income generating or domestic? (vi) is its maintenance simple, does it require training or is a specialist

needed? The answer to each of these questions indicates some aspect of the overall cost and appropriateness of the technology used for the organisation in question. Scale of operation A second aspect of financial viability of WUAs is their scale of operation. The larger a WUA is the more its viability is enhanced by advantages of scale. 11 Although if the users have the skills to generate levels of production and income from which high operation and maintenance costs can be paid, there is no reason to avoid using more expensive technology. 16

However, such increases in scale come at a price, as larger organisations may find it more difficult to maintain good relations with their clients than small organisations. A key consideration with regard to financial viability is the relationship between the revenue received from farmers and the costs of operation and maintenance12: total revenue should be equal to or greater than the costs of operation and maintenance. If this is not the case, there may be good grounds to amalgamate a WUA with a neighbour if this can arguably improve the relationship between revenue and costs. Trading in water rights A third aspect of financial sustainability of WUAs is the ability of members to trade in water rights, covered under s25 of the Act. Trading in water can increase the efficiency of a WUA and substantially may serve to bring down its costs of operation. For instance, this could be as a result of a decision by a member of a WUA not using all the water allocated to his or her property sell his or her rights to another farmer wishing to use more water. Another example is the trade of rights between two users in different locations utilising the same resource. This requires that the sellers relinquish their entitlement to water and that the buyers apply for an entitlement to use that same water. Thus, a member of a WUA could sell part of water rights to other users to boost his or her income or reduce the use of water. Providing catchment management services A fourth aspect of the financial viability of WUAs is their ability to provide catchment management services. In some cases CMAs may delegate certain water resource management functions to WUAs, for which they may be compensated by the CMA from the water resource management charges. Services that could be delegated or contracted out to WUAs could be monitoring, promotion of community participation in WRM, coordination of water users related activities, assistance in the investigation and advise on the protection, use, development, conservation, management and control of the water resources. Drawing government grants A fifth aspect of the financial viability of WUAs is their ability to draw down grants and subsidies from government departments. In the case of agricultural water use in new WUAs for poverty alleviation and WUAs which are the result of revitalisation efforts, a subsidy on the operation and maintenance costs of the organisation may be required for some time after the WUA has been established. This is because it may take several years to increase agricultural production to the point at which farmers are able to pay water use charges out of sales of produce13. 12 See for instance Ostrom, E., Schroeder, L. and Wynne, S (1993): Institutional Incentives and Sustainable Development. Boulder, Colorado: Westview Press, pgs. 25-34. 13 In the case of some existing irrigation boards, subsidies have been available for many decades. 17

How long this will take exactly is related to the speed with which a wide range of skills are transferred to the organisation, the support that is provided for marketing of produce, produce prices, etc. When seen in this light, subsidies to WUAs will be required for the next ten years, and possibly longer

6.5 Viability and entitlements to water WUAs hold significant potential for poverty alleviation as a result of the provision of access to productive resources and the generation of employment opportunities. However, WUAs can only achieve these goals if the following conditions are in place. • Members have been trained to manage the water supply system efficiently

and effectively; • Members have been trained to produce and market goods efficiently; • Members have been provided with secure access to water; • Members have been provided with secure access to land; • Members have been provided with secure access to production inputs. It is clear from the above that the provision of secure access to water is an important tool with which poverty can be alleviated, although its effectiveness depends on secure access to other productive resources such as land and training and capacity building. In establishing WUAs, the entitlements of members to water need to be clarified. The Act covers three categories of water utilisation by the poor: • s1, which provides for water uses that enhance household food security14; • general authorisations, which allow for water use without licences • water licenses, which allow for the use of larger quantities of water; and must

take into account the criteria to redress the results of past racial and gender discrimination and which must take into account the socio-economic impact of the failure to authorise certain water uses

For most categories of water use relevant to the poor, the provisions of the Act provide blanket access to water without the need for applications for licenses. This covers the needs of users aiming to achieve food security and aiming to establish small, medium and micro enterprises. However, in water stressed catchments there are no general authorisations. In these areas, it is necessary for the responsible authority to require all users to apply for licenses in order to review the prevailing water use to achieve equity in water allocations15.

14 This includes reasonable domestic use, small gardening not for commercial purposes and the watering of animals excluding feedlots, which graze on the land within the grazing capacity of that land. 15 See the National Water Act, section 43, Compulsory Licensing 18

7. WUAs and Co-operative Governance The constitution provides that all spheres of government and all organs of state must co-operate in mutual trust and good faith by co-ordinating their actions and legislation to promote good governance of the country as a whole. This recognises that, although government functions are undertaken at national, provincial or local levels, there must be commitment to co-operation between each sphere, since each has a profound effect on overall delivery of national objectives. Elements of co-operative governance approach include: • Fostering friendly relations • Assisting and supporting other departments • Informing each other and consulting on matters of common interest • Co-ordinating actions with each other • Adhering to agreed procedures • Co-ordinating between planning and implementation The use of effective systems of co-operative governance is therefore an essential element in poverty alleviation. The mechanisms for co-operation among government departments must be clear and unambiguous if the system is to serve people adequately. The poor must know what support is available, how it can be accessed, or how various programmes work together to provide support from a range of angles. It is important to address this issue within the context of WUA policy because users may decide to allow their WUA to perform a range of different functions, not all of which are necessarily related to the management of water. This means that the activities of a WUA may be relevant to more than one government department. In addition, the success of a WUA may require support from a range of different government departments. For example, a WUA that has been established for irrigation purposes could require the following kinds of assistance: • from the Department of Water Affairs and Forestry for the management of

water resources • from the Department of Land Affairs to increase the security of land tenure

amongst farmers; • from the Department of Agriculture for the provision of extension support and

advice in increasing production; • from the Land Bank for a production loan; • from the National Agricultural Marketing Council to receive advice on products

and marketing; • from the Department of Public Works for the establishment of community

assets such as storage facilities; • from the Department of Trade and Industry for training in managing a

business and facilitating market access.

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7.1 Support mechanisms The first question that needs to be resolved is how can WUAs access the support of a range of government departments to generate a virtual circle of development? Currently there is a policy proposal before Cabinet16 that suggests that from now on, all proposals that relate to agricultural water use and where government funding is involved be submitted to the Provincial Irrigation Action Committees (IACs) for approval. It also suggests that the membership of IACs be broadened to include all government departments that initiate projects that are related to agricultural water use. This includes the Department of Public Works and the Department of Health. Alongside IACs, increasing emphasis is currently being placed on the role of local government in integrating the deliverables of the various line departments into local development plans. In terms of the Integrated Sustainable Rural Development Strategy17 (ISRDS), it is expected that any services required of government departments by community institutions will be obtained through the medium of district councils. Thus, District Councils are available to WUAs and other localised water management institutions for the submission of development proposals. Where there is lack of clarity with respect to the institutional vehicles for co-operation, it is likely that the relevant Catchment Management Agency will, through the implementation of its catchment management strategy, facilitate liaison between departments on project proposals.

7.2 The impact of other water institutions A second question relating to co-operative governance is what impact do other water institutions have on WUAs?. Because of the initiatives of a range of government departments aimed at the provision of specific support at community level, communities have the choice among a range of institutions through which they can achieve their aims. Examples of these are Communal Property Associations, Community Production Centres, Trusts, and Sect. 21 companies and WUAs discussed in this document. In line with the principles of co-operative governance each ministry needs to ensure that no one institutional format excludes a community from the provision of support by another line department. To further the aims of this document DWAF should develop a Memorandum of Understanding among government departments that promote the development of community structures, which manage water on behalf of members. This memorandum should emphasise the need to let these structures access support from government departments other than those that created them. 16 National Department of Agriculture (2001): Mainstreaming the Marginalised through Agricultural Water Use. Pretoria: NDA. 17 Ministry in the Office of the Deputy President (2000): The Integrated Sustainable Rural Development Strategy. Pretoria: Ministry in the Office of the Deputy President. 20

The Department of Water Affairs and Forestry needs to make a policy decision as to the conditions under which it is prepared to provide its grants and subsidies to local level community organisations, other than WUAs, that use water for the benefit of its members. [This refers to institutions like community production centres, trusts and Section 21 companies that are already using water but have been established by other departments].

7.3 Opportunities for reconstruction and development WUAs present an opportunity to contribute to the reconstruction of communities. Well established WUAs are likely to achieve the purpose of the Act such as redressing imbalances created in the past, promoting equitable access to water and facilitating social and economic development - all means to reconstruction and development. Not only is promoting social cohesion a fundamental goal of the Integrated Sustainable Rural Development Strategy, it is also mentioned by community facilitators as a precondition for sustainable institutional development in poor rural areas. The creation of strong WUAs, which can bring different groups together in a common vision, presents a social solution that goes beyond the strict confines of water management and contributes to rural integration in a broad sense. The establishment of such WUAs is a direct function of the quality of the public consultation process that has brought the WUA into being. WUAs are also an important institution through which the National and Provincial Departments of Agriculture can implement their programme of irrigation management transfer (IMT), which transfers the management of government-initiated irrigation schemes to the users. Close co-operation is required between the two departments to ensure the achievement of agricultural and water related objectives, as well as the smooth transition to user-managed institutions. 8. Further issues to be addressed Short-term:

• Formulate a Departmental position on the provision of interim support to those developmental WUAs that are currently being established or transformed on ex-homeland schemes on the strength of financial and technical support provided by the Department of Agriculture and Land Affairs;

• Develop interim protection to the water entitlements of developmental WUAs, until such time as the national water licensing system has been fully implemented;

• Develop WUA strategy document on how to achieve policy goals in developmental WUAs

• Communicate this WUA policy to as many stakeholders as possible Medium-term:

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• Develop strategy to involve other government departments in support of WUAs and share the tasks between the various departments involved.

• Formulate jointly with all relevant government departments, a Memorandum of Understanging on agricultural water use. The goal of such a document should be to make trusts, community production centres, Section 21 companies, communal property associations and water user associations eligible for grants, subsidies and other support from all departments involved without exclusion.

• Develop further criteria to assess the sustainability of WUAs; • Development criteria for financial assistance to WUAs. This should include

which WUAs are eligible for such support, towards which sub-aspects of the WUA process will financial assistance flow, and what are the arguments for and against the subsidisation of WUAs in the early years of their establishment.

• Define the relationship between WUAs, the Department, constituent civil society institutions and how these may add up to representative structures.

• Develop policy on how to judge if a WUA is appropriately representative of the gender breakdown within its supply area.

• Develop criteria for arbitration between competing water uses or claims to water, over and above those already established by the introduction of the concept of the Reserve.

• Explore the role of non-agricultural WUAs in poverty alleviation. • Investigate the possible use of WUAs to include the provision of domestic

water supplies in their functions; • Elaborate on the policy of the minimum requirements for public

participation in WUAs; • Investigate international problems peculiar to the development of WUAs in

trans-boundary catchment areas.

9. References • Department of Water Affairs and Forestry. 1999. Guide on the transformation

of irrigation boards into water user associations. • Department of Water Affairs and Forestry (1998): National Water Act, Act no.

36 of 1998. Cape Town: Government Gazette; • Department of Water Affairs and Forestry (2001a): Establishing a Water User

Association: Guide 3 in the CMA/WUA guide series. • Department of Water Affairs and Forestry, 2001b. Establishing a Catchment

Management Agency: Guide 1 in the CMA/WUA guides series. • Department of Water Affairs and Forestry, 2001c. The Catchment

Management Agency as an Organisation: Guide 2 in the CMA/WUA guides series

• Department of Water Affairs and Forestry (undated): DWAF business plan outline for Water User Associations. Pretoria: DWAF;

• Kirsten, J., Van Zijl, and Vinck, N. (1998): The Agricultural Democratisation of South Africa. Cape Town: Francolin

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• Ministry in the Office of the Deputy President (1998): National Poverty and Inequality Study. Pretoria: Ministry in the office of the Deputy President;

• Ministry in the Office of the Deputy President (2000): the Integrated Sustainable Rural Development Strategy. Pretoria: Ministry in the Office of the Deputy President.

• National Department of Agriculture (2001): Mainstreaming the Marginalised through Agricultural Water Use. Pretoria: NDA;

• Ostrom, E., Schroeder, L. and Wynne, S (1993): Institutional Incentives and Sustainable Development. Boulder, Colorado: Westview Press;

• Subramanian, A., Vijay Jagannathan N., Meinzen-Dick, R. (1997): User Organisations for Sustainable Water Services. Washington: World Bank Technical Paper no. 354;

• Vermillion, D.L. (1997): Impacts of irrigation management transfer: A review of the evidence. Colombo, Sri Lanka: International Water Management Institute Research Report No 11;

10. Model Constitution of Water User Associations

1. The name of the Association is [specify the name] (hereinafter referred to as ``the Association'').

2. This constitution is subject to Chapter 8 of the National Water Act of 1998 (hereafter referred to as the Act) and Schedule 4 to the Act.

3. The objects of the Association are - [briefly describe the objects] 4. The principal functions to be performed by the Association in its area of

operation are - [Note: The following are options. Others may be proposed. Choose and number your options.] * To prevent water from any water resource being wasted. * To protect water resources. * To prevent any unlawful water use. * To remove or arrange to remove any obstruction unlawfully placed

in a watercourse. * To prevent any unlawful act likely to reduce the quality of water in

any water resource. * To exercise general supervision over water resources. * To regulate the flow of any watercourse by - -- clearing its channel;

-- reducing the risk of damage to the land in the event of floods; -- changing a watercourse back to its previous course where it

has been altered through natural causes. * To investigate and record -

-- the quantity of water at different levels of flow in a watercourse;

-- the times when; and -- the places where water may be used by any person entitled

to use water from a water resource. * To construct, purchase or otherwise acquire, control, operate and

maintain waterworks considered to be necessary for - -- draining land; and

-- supplying water to land for irrigation or other purposes.

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* To supervise and regulate the distribution and use of water from a water resource according to the relevant water use entitlements, by erecting and maintaining devices for -

-- measuring and dividing; or -- controlling the diversion of the flow of water.

5. (1) The Association may perform ancillary functions other than its principal functions only if it is not likely -

(a) to limit the Association's capacity to perform its principal functions; and

(b) to be to the financial prejudice of itself or its members. (2) Other functions of the Association may include [Note: The following are options. Others may be proposed. Choose and number your options.]

* Providing management services, training and other support services to -

(a) water services institutions; and (b) rural communities. * Providing catchment management services to or on behalf of

responsible authorities. 6. Founding members of the Association (1) The founding members of the

Association are the members whose names appear in Annexure 1 of this constitution and who have been authorised by the proposed participants to act on their behalf in establishing the Association. (2) The founding members will, for purposes of arranging the first election of members of the Management Committee, be considered to be the Management Committee of the Association with powers and duties limited to arranging the election in accordance with this constitution.

7. Membership of the Association (1) The first members of the Association are the persons who, during the consultation process, indicated their willingness to become members of the Association and whose names appear in Annexure 2 of this constitution. (2) Application for new membership of the Association must be addressed to the Management Committee which must, at a meeting of the Committee, consider an application and approve it unless there is good reason to refuse it. (3) An association must allow a person to become a member of the Association if directed by the Minister to do so. (4) A member may only resign as a member of the Association with the approval of the Management Committee, which may not unreasonably withhold its approval. [Note: A reason for not accepting a resignation would be, for example, if the resignation would detrimentally affect the Association's ability to meet its financial commitments in respect of infrastructure provided to serve the member concerned.]

8. Register of the members. All members must communicate their addresses from time to time to the person acting as secretary of the Association, who must keep a register of the names of members and of their addresses.

9. Rights of the members. (1) Membership of the Association does not give any member a right to any of the moneys, property or assets of the Association, but only gives members the privileges of membership, subject to such charges and reasonable restrictions as are imposed by the Management Committee from time to time.

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(2) A member whose application for membership has been approved is bound by the constitution and rules of the Association which are then in force or as they are subsequently amended.

10. The liability of members is limited to the amount of unpaid charges and interest thereon owing by them to the Association.

11. Election of members. Any member of the Association is, subject to disqualifications contemplated in Schedule 4 to the Act, eligible for election as a member of the Management Committee. If the Association's area of operation is divided into sub-areas, a member will only be eligible for election as a member of the Management Committee for the sub-area in which that member resides.

12. Nomination and voting. Any person whose name is on the voters list of the Association may nominate candidates for election as members of the Management Committee and may vote at an election of members of the Committee. A person whose name appears on a voters list prepared for a sub-area of the Association's area of operation, will be entitled to nominate candidates and to vote only in elections for that sub-area.

13 Membership of Management Committee [Note: The following are options. Others may be proposed. Choose and number your options.] (1) Option (a) The Management Committee of the Association will consist of [specify the number] members. Option (b) [Note: This option is additional to option (a) and applies where the area of operation of the Association is divided into sub-areas.] The area of operation of the Association will be divided into sub-areas as described in Annexure 3 to this constitution. Each area will be represented on the Management Committee on the basis set out in that Annexure. (2) Membership of the Management Committee will be determined by an election process in which all members whose names are on the Association's voters list may participate. (3) Option (a) Members will, subject to the disqualifications contemplated in Schedule 4, be elected for a fixed term of [specify period] years. Option (b) [Applies to election process only] Members will, subject to the disqualifications contemplated in Schedule 4, be elected for a fixed term of [specify period] years. The first election will take place as follows -

(i) one-third of the members elected who stand highest on the poll will hold office for a period of [specify period] years; (ii) one-third of the members elected who stand next highest on the poll will hold office for a period of [specify period] years; and (iii) the remaining members elected will hold office for a period of [specify period] years. If, in any case - (a) no poll is required because the nominations received were not greater than the number of members to be elected; or (b) two or more candidates have received an equal number of votes, the respective periods of office of the members will be determined by lot under supervision of the returning officer.

(4) If a vacancy occurs on the Management Committee, the vacancy must be filled according to this item, provided that the member must be elected for a period equal to the remainder of the period for which the member who has vacated the office would otherwise have continued in office.

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(5) At least 30 days' notice of an election must be given to all members of the Association.

14. Appointment of chairperson and deputy chairperson [Note: The following are options. Others may be proposed. Choose and number your options.] (1) Option (a) After the election of the Management Committee the members of that Committee must elect a chairperson and deputy chairperson of the Association from amongst their members. The Management Committee may appoint any person to chair the proceedings for that purpose. Option (b) After the election of the Management Committee the members of the Association must elect a chairperson and a deputy chairperson of the Association from amongst the elected members of the Management Committee. The members of the Association may appoint any person to chair the proceedings for that purpose. (2) The chairperson and deputy chairperson hold office for a period of 12 months from the date of their election and may be re-elected. (3) When the period of office of a chairperson or deputy chairperson expires, that person will, provided that he or she remains a member of the Association, remain in office until the next meeting of the Management Committee. (4) A new chairperson and deputy chairperson of the Management Committee will be elected annually. Should any of these offices be vacated before the term expires, the office must be filled immediately according to the procedure set out in this item.

15. Voters list. (1) The founding members of the Association must select a person to prepare a voters list for the first election of members of the Management Committee. The voters' list must show -

(a) the names of all members included in Annexure 2 to this constitution and, where appropriate, the name of a member's accredited representative;

(b) particulars of each member's entitlement to water use; and (c) the number of votes a member is entitled to.

(2) If the Association's area of operation is divided into sub-areas, the voters' list must also be divided into sub-areas and the particulars referred to in sub-item (1) must be shown under the respective sub-areas. (3) The number of votes will be determined on the following basis - [Note: The following are options. Others may be proposed. Choose and number your options.]

(a) One vote per entitlement to water use. (b) A pro-rata number of votes in proportion to the quantity of water authorised under a particular entitlement, compared to the total quantity of water under all of the entitlements registered with the Association. In this calculation all fractions must be rounded off to the next higher figure. (c) A pro-rata number of votes in proportion to the quantity of water authorised under a particular entitlement, compared to the total quantity of water under all the entitlements registered with the Association. In this calculation-

(i) all fractions must be rounded off to the next higher figure; and

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(ii) no member will be awarded more than 10 votes. (d) One vote for every five hectares or part of five hectares of land that can be irrigated in terms of a member's entitlement. (e) One vote for every five hectares or part of five hectares of land that can be irrigated in terms of a member's entitlement, provided that no member will be awarded more than 10 votes.

(4) If the entitlement to use water is not in the name of a natural person, the holder must nominate an accredited representative whose name must appear on the voters' list and who may exercise the vote. (5) If the entitlement is in the name of two or more persons they must designate one of their numbers to represent them and that person's name must appear on the voters' list and he or she may exercise the vote. (6) The voters' list must annually be revised by the Management Committee and also whenever there is an amendment to the Association's area of operation.

16. Appointment of staff. [Note: The appointment of a Chief Executive Officer for the Association is dealt with in Schedule 4 to the Act.] (1) The Management Committee may employ such persons as it considers necessary to perform the Association's functions under this constitution. (2) The appointment of employees or any change in their conditions of service must be approved by resolution of the Management Committee. (3) All employees of the Association will remain in office despite any change in the composition and membership of the Management Committee.

17. Raising of loans. (1) The Management Committee may raise by way of loans, including bank overdrafts, any funds required by it for the purpose of carrying out any of its functions under this constitution or the Act. (2) Whenever the Management Committee proposes to raise a loan, it must give notice in writing of its intention, setting out details of the proposal. The notice must be given to every member of the Association not less than 21 days before the date of the meeting of the Committee at which the proposal will be considered. (3) No loan may be raised without a resolution of the Management Committee passed at a meeting at which not less that two-thirds of the members of the Committee are present.

18. Charges and recovery of charges. (1) For the purpose of defraying any expenditure that the Management Committee has lawfully incurred or may lawfully incur in carrying out its functions and duties it may annually assess charges on members according to the pricing strategy for water use set by the Minister. (2) The Management Committee may recover the charges assessed from either -

(a) the owners of the land concerned; or (b) any person to whom water is supplied on the land.

(3) Whenever the Management Committee has assessed a charge, the Committee must prepare an assessment roll setting forth -

(a) the name of each member liable to pay charges; (b) a description of the piece of land, which may be a specially delineated area, in respect of which the charge is assessed;

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(c) the quantity of water or abstraction time period to which the member is entitled;

(d) the amount of the charge assessed; (e) the date or dates on which payment is due and the amount due on each date; and (f) the rate of interest payable on non-payment and the effective date of interest.

(4) A copy of the assessment roll must lie open for inspection in the office of the Association at all reasonable times by any member of the Association.

19. Annual Report [Note: The following are options. Others may be proposed. Choose and number your options.] Option (a) The procedure as set out in Schedule 4 to the Act applies. [Note: This option is only recommended for use by well-established irrigation boards with a large membership and which are transformed into water user associations after promulgation of the Act.] Option (b) The Management Committee must, within three months after the end of the Association's financial year, convene a general meeting of members and must at the meeting -

(i) table an audited financial statement of the Association's accounts for the preceding financial year, including full particulars of any remuneration paid by the Association to members of the Management Committee and employees of the Association; and (ii) give an account to the members of its activities during the year.

20. Winding up [Note: The following are options. Others may be proposed. Choose and number your options.] Option (a) (1) The Association may be dissolved by a resolution passed at a special general meeting held for that purpose, provided that:

(i) the resolution is passed by a majority of two-thirds of the members present and entitled to vote at the meeting; and (ii) the resolution is confirmed at a further special general meeting held not less than four weeks after the preceding special general meeting by a majority vote of members entitled to vote thereon.

(2) A meeting passing a resolution referred to in sub-item (1)(i) of this constitution may also pass resolutions by a majority vote for -

(a) the appointment of a liquidator; and (b) the disposal of surplus funds and assets of the Association after winding up and after the payment of all debts and obligations of the Association, provided that any surplus assets may only be transferred to an Association or institution with objects similar to those of the Association, or to the Minister.

Option (b) The affairs of the Association will be wound up by a person appointed by the Minister in accordance with any directives given by the Minister, and subject to section 97 of the Act. Annexure 1 List of founding members (in alphabetical order) Annexure 2

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List of members (in alphabetical order) Annexure 3 Description of sub-areas and representation in Management Committee

Ends