South Africa is a water scarce country which requires special conditions and limitations being placed on water use. Forestry's water use is classified as a Streamflow Reduction Activity (SFRA) and is subject to a range of special conditions under the National Water Act. No forestry can be practiced without an SFRA licence. Through this, forestry's ability to expand its estate has been curtailed. Better understanding about forestry's water use and more research on the issue is recommended. The forestry industry, however, is proactive in forest hydrology and is finding innovative ways to ensure continued and increased productivity.