Int. J. Water, Vol. 5, No. 3, 2010 223 Copyright © 2010 Inderscience Enterprises Ltd. The potential economic impact of climate change on equitable water access in small towns: a South African case study Pierre Mukheibir Wannon Water, P.O. Box 1158, Warrnambool, Vic 3280, Australia E-mail: Pierre.Mukheibir@wannonwater.com.au Abstract: This case study demonstrates that the consequence of climate change impacts on water resources is indeed an economic issue when it comes to meeting projected water demand and ensuring access to basic water supplies. In order to meet the same water demand under climate change conditions as compared with normal climate conditions the investment cost quadruples over the 30 year period. This in turn results in an increase in the average annual unit selling price of the water increasing by 25%. A fundamental shift in development policy is therefore required if equitable access to affordable water is to be achieved. Keywords: climate change; water; access; affordability; pricing; South Africa. Reference to this paper should be made as follows: Mukheibir, P. (2010) ‘The potential economic impact of climate change on equitable water access in small towns: a South African case study’, Int. J. Water, Vol. 5, No. 3, pp.223–245. Biographical notes: Pierre Mukheibir is a qualified Civil Engineer, currently working as a Senior Planning Engineer. The research for this case study was undertaken while working at the University of Cape Town. His experience includes work on adaptation to the impacts of climate variability and change, specifically in water resources management in rural areas and at the municipal level. He has completed a PhD thesis entitled ‘Water, Climate Change and Small Towns’. 1 Introduction This case study has been undertaken to establish the linkage between access to and affordability of domestic water supplies in small towns and projected climate change impacts. The key objective of this case study is to demonstrate the effect of projected climate change impacts on the local water supply of a small town and the related financial consequences in terms of urban water pricing and access. Climate change directly impacts on sustainable development through stresses on the physical and financial resources. In small towns these resources are generally limited and an adverse impact on either can negatively affect the sustained delivery of services related to the local development goals, specifically the supply of clean safe water.