The TCTA is a special purpose vehicle for the financing and construction of national water resources infrastructure. It's classified as a Schedule 2 entity in terms of the PFMA. As a non-profit making organisation, the nature of the actual costs charged, has resulted in lowering tariffs for raw water. The TCTA operates in a very sound ring-fenced financial environment as required by the National Water Act (No. 36 of 1998) and in full compliance with the Public Finance Management Act (No.1 of 1999) (PFMA).