Three related matters concerned the interpretation of section 25(1) and (2) of the National Water Act 36 of 1998. In the Lötter matter, the Doornkraal Business Trust purchased 30 hectares of water use entitlement from Britzkraal for R1,950,000. Britzkraal surrendered its entitlement under section 25(2), and Doornkraal applied for a licence under section 41. The Director-General refused the application, stating that section 25(2) does not permit transfers of water use entitlements to third parties and prohibits trading in such entitlements. In the Wiid matter, three agreements were concluded for the surrender of water use entitlements at prices ranging from R2,666,667 to R15,413,333, which were also refused. The SAAWUA matter sought declaratory relief on the meaning of section 25(1) and (2). Until January 2018, the Department of Water and Sanitation had consistently allowed trading in water use entitlements, but changed its policy position in a circular dated 19 January 2018. The High Court dismissed all applications, holding that trading in water use entitlements was not permitted. The Supreme Court of Appeal upheld the appeals in a four-to-one majority decision.