In the face of mounting water supply challenges, Cape Town has increasingly turned to alternative sources, like groundwater. However, the utilisation of groundwater carries inherent risks, particularly the contamination stemming from land-based activities, such as fuel stations. Leaks from underground tanks at these stations represent a major global cause of groundwater pollution, and Cape Town is no exception. To safeguard public health and mitigate potential harm, it is imperative to examine the legal regulations governing fuel station development, assess measures for controlling their environmental impacts and evaluate strategies for managing the associated risks. This study aims to provide an exhaustive review of the regulatory framework concerning the environmental impacts of fuel stations, focusing on groundwater protection in Cape Town. A combination of desk research and interviews was employed to gather and analyse data. The findings show a deficiency in precautionary measures for safeguarding groundwater near fuel stations. Consequently, through this study, the existing legal framework’s effectiveness is called into question, with this study suggesting actions to address these identified shortcomings.