Lesotho Highlands: the socio-economics of exporting water

Lesotho Highlands water project is one of the most significant and ambitious water supply schemes under construction in the southern hemisphere. Given the relatively small size of the Lesotho economy, a project of such magnitude has inevitably had dramatic effects, particularly on human settlement patterns. This paper reports on the socio-economic challenges that had to be resolved before, during and after the implementation of the £1·5 billion phases 1A and 1B, which were completed in 1998 and 2002 respectively. It also provides the latest data on project costs and the considerable income and other benefits now being received by Lesotho.