How do I turn my natural water source into a revenue stream?

It sounds like the ideal source of income – a commodity which becomes scarcer by the day is bubbling up on your property and the only thing standing between you and an overflowing bank account is to package it and place it on the market! Easy, right?

Unfortunately not. This matter is subject to numerous pieces of legislation and regulations. It can cost you a pretty penny and dry up your fountain in a heartbeat (figuratively speaking, of course!) if you do not abide by the legislation.

Not only are you faced with legislative red tape, but the Departments of Water Affairs, Health and Environmental Affairs are also involved in regulating this particular revenue stream.

Where do I begin?

Any person or entity (the extractor) who wants to extract spring water must acquire a Water Use License issued in terms of the , before he or she may extract the water.

To apply for a water license the extractor can download the application forms online and submit the completed forms, in hard copy, at his or her closest regional branch of the Department of Water Affairs. 

The application process is cumbersome and consists of different phases. The applicant will also be required to submit various supporting documents, which includes, but is not limited to, a technical report to be compiled by a qualified person at the cost of the applicant.

Extractors need to be aware of the fact that water use licenses are issued to a specific person or entity, for a specific use, and for a specific water source.

Accordingly, water use licenses cannot be sold with a property on which the source is found and each subsequent owner needs to apply for his or her own water use license.

The extractor also needs to be aware of the fact that he or she needs to apply for a water use license which specifically allows for the extracting of water for the bottling and selling thereof. Should the extractor already possess a licence which allows, for instance, for irrigation, he or she should still apply for a water use licence which provides for the extraction of water from the source for the bottling and selling thereof.

What needs to happen after I acquire a water use license?

The water will be qualified as foodstuffs in terms of the , regulated by the Department of Health, in light of the fact that the water will be sold for human consumption. The water sold will accordingly have to comply with the act.

The act distinguishes between 3 types of water that are suitable for human consumption.  It determines, amongst other things, what the chemical and mineral composition of each type of consumable water must be.

The extractor must be fully aware of the classification that will be ascribed to the water extracted, and must ensure that he or she complies with the requirements of the particular type of water as regulated by this act. 

Is there anything else that I need to keep mind?

A further aspect that requires attention is the labelling and packaging requirements of bottled water. The Foodstuffs, Cosmetics and Disinfectants Act stipulates different labelling requirements for each type of water. However, generally speaking, each label needs to indicate where the water was extracted, what its chemical and mineral composition is and whether it is sparkling or still water.

Last thoughts

This area of law is extremely complex and extractors must be diligent in their compliance with the regulatory framework in order to prevent any fines and unnecessary litigation.

Prospective extractors are advised to seek legal advice when entering into the business of extracting water in order to sell it as drinkable water, to ensure that the foundation of their new and exciting business is rock-solid. 

www.vdt.co.za |012 – 452 1300 |info@vdt.co.za

© VDT Attorneys

April 15, 2020
Can polygraph testing and background checks be used?

Can polygraph testing and background checks be used?

The current economic climate, unemployment and concerns regarding job security have contributed to the increased use of falsified CV’s in job applications as well as criminal activities by employees. As a countermeasure, employers are making use of background checks and polygraph tests to combat the fraudulent and criminal activities of applicants and employees alike.

Dog owner beware! Dog bites can be expensive

Dog owner beware! Dog bites can be expensive

Everybody has heard of someone who has been bitten by a dog. This is no accusation directed at dogs as owner irresponsibility is often the main cause of the attack. Correctly, one must then look at the liability of the owner to determine whether the actions of the dog are attributable to the owner or not.

Options v Pre-emptive Rights in Sale Transactions

Options v Pre-emptive Rights in Sale Transactions

Owners, agents and property professionals are often confronted with the legal terms ‘option’ to purchase and ‘pre-emptive right’ or a ‘right of first refusal’. So what is the difference between an option to buy property and a right of first refusal, and under which circumstances should each term be utilised in practice?

Sign up to our newsletter

Pin It on Pinterest