The Water Services Act, 1997 (Act No. 108 of 1997), gives power to the Minister with the concurrency of the Minister of Finance, from time to prescribe norms and standards in respect of tariffs for water services.

The previous Norms and Standards were promulgated in April 2002 and came into effect 01 July 2003. Since then, there have been various developments which necessitated this review, amongst other such as the promulgation of the Local Government: Municipal Finance Management Act No. 56 of 2003, the Municipal Fiscal Powers and Functions Act No. 12 of 2007 and the Municipal Systems Act No. 32 of 2000.

The revised norms and standards make a provision for the multi-year tariff determination for bulk water services, retail water services and sanitation services to ensure the predictability of tariffs. Different types of tariffs are accounted for such as drought tariffs, seasonal tariffs for water conservation and demand management (penalty charge). The norms and standards are a regulatory mechanism to support Water Services Authorities, and bulk water service providers to set tariffs in a transparent and consistent manner.

The effective date for the implementation of these Norms and Standards by Water Services Institutions responsible for bulk potable, retail and sanitation services is 01 April 2026.