The 1998 National Water Act promotes participation of small-scale users in the management of newly established water user associations in South Africa. This paper present some research findings of what could be considered as one of the few successful transformations from commercial Irrigation Boards to Water User Associations in South Africa. The study identifies and evaluates some needs of historically disadvantaged groups in the Lower Olifants River of the Western Cape. A situation analysis with regard to the current water balance, water use rights and participation in water management of the area is presented. The need for active participation in water management decision-making processes features prominently with mutual trust between parties as an important factor.