South Africa has adopted a modern, integrated approach to water resources management. However, the institutional barriers to its implementation have seriously limited policy effectiveness. Water resources management - a national responsibility implemented through regional offices - is not adequately integrated with the provision of water services, which is a municipal responsibility. The second National Resource Strategy provides an opportunity to address some key institutional challenges in the water sector. A need exists to prioritise the establishment of the water catchment management agencies in line with the second National Water Strategy; and ensure they better integrate water resources management, the provision of water services and land use through enhanced engagement of all government and non-governmental stakeholders, including traditional authorities.