On the 9 June 2004, Cabinet resolved that the former Department of Water Affairs and Forestry should proceed with the implementation of the Oliphants River Water Resource Development Project Phase 2, subject to environmental authorisation. The phase 2 of this project included the construction of De Hoop Dam. In October 2006, environmental authorisation for the De Hoop Dam was obtained and the initial financing was budgeted for under the National Water Resource Infrastructure Agency in the 2006 budget of the Department. The objectives of the De Hoop Dam were to supply water for both domestic and commercial use in Limpopo.