The Government has relaxed its stringent water quotas to beleaguered farmers in the Gamtoos River Valley, which was imposed over two years ago.
This is an economic boost for the 200 citrus, cash crop and dairy producers reliant on the region's biggest water source.
The easing of restrictions, from 40% of farmers' allocated annual drawings to 85% for the new water year which starts in July, comes on the back of discussions which took place on Tuesday between the Department of Water and Sanitation, Kouga Dam custodians the Gamtoos Irrigation Board (GIB) and the Nelson Mandela Bay Municipality in Port Elizabeth.
The move comes as the Kouga Dam's water level remains steady at about 45%, currently sitting at 44.5% capacity.
Gamtoos Irrigation Board CEO Rienette Colesky says the easing of restrictions is "good news for farmers" as the past two years of severe restrictions had put an exceptional strain on farmers in the region.
She said that if severe restrictions had carried on for a third year, the consequences would have been dire.
According to information from Gamtoos Irrigation Board stakeholders, the strain of restrictions had manifested in a 20.8% reduction in employment of fulltime and seasonal labourers, translating into a loss of R51.4-million to lower-income families in lost wages over the past year, directly and indirectly affecting 6,640 individuals.