Cape Town households using more than 35 kilolitres of water a month now pay R95.63 per kilolitre before VAT, 14.12% more than in 2025/26. The first six kilolitres rose just 3.00%, to R21.78. The City's 2026/27 tariffs place almost all of the increase on the heaviest users.
A steeper climb for sanitation
Sanitation charges are billed on a share of water use, and they rose even more sharply at the top. The highest domestic sanitation step went up 19.12% to R64.27 per kilolitre, while the lowest rose 2.82% to R15.90. Domestic fixed monthly charges, previously set by property value, are now set by meter size: R90.13 for water and R49.27 for sewerage on a 20 mm connection.
Protection at the bottom
Indigent households pay R0.00 on every step. They qualify with a household income of up to R7,500 a month, or a property valued at R620,000 or less, under a policy approved on 29 June 2026. Commercial and industrial customers pay a flat R39.56 per kilolitre, up 4.50%.
Why the price signal matters now
Demand grew 5% in 2025/26, against a target cap of 1–1.5% a year to 2034/35. The City expects to reach its 346.9 million m3 annual allocation from the regional dam system within two years. System storage stood at 75.3% on 5 October 2026. The official 2024/25 figure for use per person was 166.45 litres a day, and the target is below 150 by 2034/35.
Collection is the weak point
Pricing changes behaviour only if bills are paid. At 30 June 2024, 65.2% of gross water receivables were impaired, up from 26.7% a year earlier.
Which new supply schemes are due before 2036? Who controls the dams Cape Town depends on, and how large is the funding gap in its demand programme? The full report answers these questions. The full report, Cape Town City Intelligence Profile, is available for USD 99 at https://ourfuturewaterintelligence.com/reports/cape-town-city-intelligence-profile. For a free overview, see https://ourfuturewaterintelligence.com/cities/cape-town.