In terms of the Act, forestry is declared as a stream flow reduction activity. Existing and new forestry plantations will attract charges for water resource management. Full recovery of allocated water resource management costs in terms of 5.3.1, based on the total registered average annual volumetric water use, must be achieved for each water management area. The Act makes provision for the DWAF to make a volumetric determination of water to be ascribed to a stream flow reduction activity for purposes of water use allocation and the imposition of charges.

Water resource management charges for stream flow reduction of commercial forestry plantations will be expressed in cents per cubic meter for each water management area and the registered average annual stream flow reduction volume per water user will determine the amounts payable to the responsible authority.

The volumetric determination of stream flow reduction for registration purposes will be based on the outcome of the current stream flow reduction modelling research project conducted for the Department under supervision of a steering committee on which the forestry industry is represented. The results of this research, which is intended to refine existing empirical models, will be available in 2000. The model to be used will be based on the document "The impacts of timber plantations on runoff in South Africa" by Le Maitre, Scott and Fairbanks, 1997, taking account of the different species, areas planted, location and resulting moisture availability in quaternary catchments.

This charge would not generally be applicable, unless the sector willingly buys in on the construction of storage dams to compensate for stream flow reduction effects.