Water: The First Question Every Farm Buyer Should Ask
When looking at farms, one of the biggest questions will almost always be water.
A property can survive without many things. Buildings can be improved, fences can be repaired, roads can be upgraded and soil can be worked over time. But without water, or without reliable and usable water, the true potential of a farm can be severely limited.
This is especially true here in the rural outposts of the old Klein Karoo, where the hardness of nature tells the story of water. In this landscape, water is not just a feature of a property. It is often the difference between lifestyle value, agricultural value and long-term sustainability.
When you walk onto a farm, the land often starts speaking immediately. The condition of the veld, the health of the trees, the type of vegetation, the presence or absence of dams, boreholes, fountains, irrigation lines and cultivated lands all begin to tell a story.
But the question is not only whether there is water. The real question is: what type of water is available, how reliable is it, what is the quality, and what may lawfully be done with it?
In many parts of the Klein Karoo, water can be limited and sometimes of substandard quality. Borehole water may be brackish, inconsistent or suitable only for certain uses. In contrast, farms along major water sources such as the Breede River, or properties in higher-rainfall areas with perennial streams, may have access to stronger and better-quality water resources. These differences have a direct impact on farming potential, irrigation value, livestock carrying capacity, lifestyle use and future development.
So how does a buyer begin to understand the water situation of a farm?
The first source of information is usually the landowner or seller. The seller has lived with the property, used the water and experienced its limits. A genuine farmer or landowner will often know what can be done, what cannot be done, which boreholes are reliable, which dams hold water, which lands have historically been irrigated and what happens in dry years.
That information is important, but it should not be the only information relied on.
A serious buyer should also ask for documentary proof. This may include water-use registration documents, existing lawful use records, water-use licences where applicable, irrigation board or water-user association records, borehole test results, water-quality reports, dam information and any available correspondence from the Department of Water and Sanitation.
South African water law changed fundamentally under the National Water Act, 36 of 1998. Water is no longer simply something that can be used randomly because it is found on or near a property. The Act regulates water use and includes uses such as taking water from a water resource, storing water, diverting or impeding the flow of water, altering a watercourse and certain waste-related water uses.
This is why buyers should be very careful with assumptions. A stream crossing a property, a fountain on the land, an old dam, or a borehole does not automatically mean unlimited use. The practical availability of water and the lawful entitlement to use that water are two different questions.
In some cases, water use may fall under Schedule 1 use, which generally relates to limited domestic use, small gardening, and water for animals within limits. In other cases, the use may be an existing lawful use, a general authorisation, or a licensed water use. Storage of water in dams can also be relevant, especially where the storage volume is significant.
For farm buyers, the safest approach is to build a simple due-diligence checklist around water:
What are the sources of water?
How much water is available in normal years and dry years?
Is the water from boreholes, fountains, rivers, streams, canals, scheme water or dams?
Is the water quality suitable for the intended use?
Are there laboratory water-quality tests?
Are the boreholes tested for yield?
Are the dams lawful and registered where required?
Are there water-use registration documents?
Is the property part of an irrigation board or water-user association?
Are there annual levies, restrictions or conditions?
Are there any servitudes, pipelines or shared infrastructure?
Does the current use on the property match the documentation?
Water is not only a technical issue. It is a value issue. A farm with reliable, lawful and good-quality water will generally stand in a much stronger position than a property where the water position is uncertain.
This does not mean that a dry farm has no value. Many dryland and lifestyle properties have excellent value for conservation, tourism, retreats, game, livestock, fynbos, mountain land and lifestyle use. But the buyer must understand what he is buying. The intended use must match the water reality.
For this reason, buyers should not only look at the beauty of a farm. They should look carefully at the water story behind the beauty.
In the next article, we will look more closely at the different types of water that can influence the value and usability of a farm — including surface water and groundwater — and why both quality and legal entitlement matter when buying rural property.
