The development of a waste discharge charge system (WDCS) in South Africa has been proposed to promote waste reduction and water conservation. The WDCS is based on the polluter pays principle and is designed such that the management of waste discharges achieves resource quality objectives (RQOs) at the minimum total cost to the catchment. Two charges are distinguished: first a charge for optimising use of the resource (incentive charge); and secondly, a charge for development and operation of mitigation measures in the resource (mitigation charge). The WDCS is applied to both point sources and non-point sources (NPS) of contamination. In the inclusion of NPS, the charge system distinguishes between registered and non-registered NPS, with the charge applied to the former group only, in the first instance. This paper introduces the WDCS by describing the principles and the theoretical basis of the WDCS, highlighting the link to RQOs as the benchmark of acceptable externalities. The paper explores the inclusion of NPS in the WDCS, describing: first, the principles of NPS inclusion in the WDCS; secondly, the types of NPS included in the present version of the WDCS; thirdly, the methodology for charge estimation; and finally, non-registered NPS and their potential inclusion in future editions of the WDCS. The paper concludes with remarks and challenges facing the first edition of the WDCS.

The waste discharge charge system (WDCS) is being developed by the Department of Water Affairs to promote waste reduction and water conservation. It forms part of the Pricing Strategy, which is being established under the National Water Act (Act 36 of 1998). The WDCS is based on the polluter-pays principle and aims to:promote the sustainable development and efficient use of water resourcespromote the internalisation of environmental costs by impactorscreate financial incentives for dischargers to reduce waste and use water resources in a more optimal way. The WDCS is premised on resource quality objectives (RQOs) as the measure of acceptable risk, and seeks to achieve RQOs at lowest total cost to the catchment. Where RQOs are exceeded or are threatened, impact on the resource is unacceptable and the WDCS may be deployed to achieve RQOs. The system will be applied at a catchment scale where the catchment is defined as those areas that have a significant impact on water quality, or are impacted by the specific water quality problem such as salinity, nutrients, heavy metals and organics. This paper aims to provide a summary of the WDCS Strategy.

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