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Abstract
Water is both an economic input and a basic requirement to sustain life. Efficiency and equity considerations are therefore central to water supply and allocation. In South Africa the distribution of water resources is presently also under discussion. Eight principles are proposed in the White Paper on Water Supply and Sanitation Policy. These principles, although comprehensive, however lacks cohesiveness to guide the apparent conflict between efficiency and equity considerations. A policy framework to reconcile this conflict is developed in this paper.