Water markets in South Africa are being studied to address issues of fairness, efficiency, and water quality. Farmers pay fixed water rates regardless of usage, which can lead to wasteful practices. Water markets can help assign a value to water based on scarcity. However, current water trading in South Africa mainly involves non-users and intensive users, not leading to water conservation. Implementing water-saving technologies may increase water usage rather than saving it. It is suggested that water transfers should consider actual water consumption to promote conservation.