A substantial media campaign was launched to inform residents about the severity of the drought and urge water conservation . Together with stringent demand management through higher water tariffs, this communication campaign played an important role in reducing consumption from 540 to 280 litres per household per day . Revenue from water sales contributes 14% of Cape Town's total revenue, making it the third-largest source of 'own' revenue for the city . However, with an unprecedented reduction in water use, the municipal budget was undermined . Collecting less revenue created a financial shock as the city struggled to recover operating finance, even while new capital requirements were needed for the development of expensive new water supply projects . This financial shock was compounded by the economic stress of poor agricultural and tourism performance brought about by the drought . As wealthy residents invested in private, off-grid water supplies, the risk of reduced municipal revenue collections from newly off-grid households aggregated with the risk of reduced tourism, increasing the risk to the reputation of the incumbent administration . This demonstrates how a population cohort with a high response capability to water scarcity can reduce risk while simultaneously increasing risks to the municipality and its capacity to provide water to vulnerable residents . Given that city populations in Africa pay 5-7 times more for water than the average price paid in the USA or Europe , municipal finance needs to delink operating revenue from potential climate shocks .
IPCC
Climate Change 2022: Impacts, Adaptation and Vulnerability
IPCC Report