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The Knysna Municipality is in discussions with the Department of Water Affairs and Sanitation to secure funding for a second storage dam.
Knysna's acting municipal manager, Johnny Douglas said both the Gouna and Knysna Rivers that feed the Akkerkloof Dam,have stopped flowing, leaving Knysna with only have 20 days of water left.
Douglas said they have received only 1mm of rain during the week.
He added that they cannot use all their pumps to get water into the balancing Glebe Dam due to low water levels.
Douglas said they are in a desperate need to reduce the town's water consumption.
