Rand Water has reduced the bulk potable water supply to the Lesedi Local Municipality by 20% after the municipality failed to honour several payment agreements, leaving it with an outstanding debt of more than R27.7 million.
In a media statement issued on Thursday, 19 June 2026, Rand Water confirmed that the decision followed months of discussions between the water utility and the municipality in an attempt to resolve the growing debt crisis.
According to Rand Water, Lesedi Local Municipality currently owes the entity R27.71 million for bulk water services supplied under the existing contract.
The water utility said it had formally notified the municipality on 14 April 2026 of its intention to implement water supply restrictions if payment arrangements were not honoured. The notice gave the municipality 30 days to respond, make representations, and inform residents of possible service disruptions.
Rand Water explained that it had considered requests from the municipality to reconsider the planned reduction. However, the municipality allegedly failed to make payments towards the outstanding instalments agreed upon under the Debt Settlement Agreement (DSA).
As a result, the water utility implemented the 20% reduction in bulk water supply on 17 June 2026 after the parties were unable to reach 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,” Rand Water said.
The utility added that despite several Debt Settlement Agreement meetings, the municipality had failed to make the required payments, placing Rand Water’s financial sustainability at risk.
Rand Water warned that continued non-payment by municipalities threatens its ability to operate effectively and continue supplying potable water to communities across Gauteng and neighbouring provinces.
The entity emphasised that it receives no direct financial allocation from the national government and relies entirely on revenue collected from its customers, mainly municipalities, to meet its operational and 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,” the statement said.
Rand Water reiterated its commitment to ensuring the long-term provision of bulk potable water to all customers while stressing the responsibility of municipalities to pay for services rendered.
The Lesedi Local Municipality had not yet publicly responded to the latest action by Rand Water at the time of publication.
Residents are advised to use water sparingly as the municipality assesses the impact of the reduced bulk water supply.
