Cape Town - South Africa will start running out of water 13 years from now without better management, according to Treasury's 2012 Budget Review, tabled on Wednesday.
"On current projections, South Africa's water demand will outstrip available supply between 2025 and 2030," the document states.
Avoiding this required "better management and adjusted pricing mechanisms to support efficient and sustainable use of water".
Government would re-examine its water pricing strategy next year.
The review notes that while 97% of the country's drinking water met minimum standards, "only 71% of waste water is compliant".
Over the next three years, R75bn had been allocated to "water infrastructure, quality management, resource planning and support to local government" to address this and other water-related problems.