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Socio-economic valuation of water reallocation

Framework development and application in South Africa

Bibliographic Data

ID21697258
AuthorsGiulia Zane (0000-0002-4160-1166, a International Water Management Institute, Airport Residential Area, Accra, PMB CT 112, Ghana, corresponding author), Marie-Charlotte Buisson (0000-0002-2111-1864, b International Water Management Institute, 127, Sunil Mawatha, Battaramulla, Colombo, Sri Lanka), Barbara van Koppen (0000-0002-7707-8127, b International Water Management Institute, 127, Sunil Mawatha, Battaramulla, Colombo, Sri Lanka), Pinimidzai Sithole (c Global Water Partnership, 333 Grosvenor Street, Hatfield 0083, Pretoria, South Africa), Everisto Mapedza (0000-0001-8334-3495, d International Water Management Institute, 333 Grosvenor Street, Hatfield 0083, Pretoria, South Africa), John Dini (e Water Research Commission,4 Daventry St, Lynnwood Manor 0081, Pretoria, South Africa)
Year2025
Volume27
Issue11
Pages1175-1194
Publication date2025-11-01
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueWater Policy (JOURNAL)
Journal identifiersISSN: 1366-7017 • E-ISSN: 1996-9759
PublisherIWA Publishing (PUBLISHER • GB)
DOI10.2166/wp.2025.114
OpenAlexW4415166718
LanguageEN
References cited26

This paper introduces a socio-economic valuation framework for water reallocation that integrates considerations of equity, efficiency, and sustainability into decision-making. Designed to inform the development and implementation of policy in contexts of water scarcity and historical inequality, the framework systematically incorporates both direct economic benefits and externalities, such as poverty alleviation, food security, and inequality reduction, across different user groups. Applying the framework to South Africa's Inkomati-Usuthu Water Management Area (IUWMA), we demonstrate how it aligns with the country's third National Water Resource Strategy (NWRS-3) and compulsory licensing processes under the National Water Act. Despite data limitations, empirical findings from the case study reveal that reallocating water from large-scale commercial agriculture to historically disadvantaged smallholder farmers could yield welfare gains. The proposed framework offers a practical tool to support inclusive and evidence-based water governance by moving beyond conventional equity-efficiency trade-offs and incorporating non-market benefits

Agriculture · Corporate governance · Disadvantaged · Poverty · Sustainability · Water resources · Water scarcity · Welfare · Public-Private Partnership Projects · Water resources management and optimization

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