The Guguletto Family Trust (appellant) purchased a water quota of 22.3 hectares from Mr. C.M. Uys in September 2007 for R250,000, attached to Portion 4 of the Farm Vermeulenskraal 480, Ventersburg. The sale was conditional upon obtaining a licence from the Department of Water Affairs and Forestry to transfer the water quota to the appellant's property (Portion 36 and 37 of the Farm Dayton 580). The appellant applied for a water use licence in 2008 under section 41 of the National Water Act 36 of 1998. The Chief Director: Water Use in the Free State Region recommended approval of the licence. However, the Chief Director: Water Use in Pretoria (first respondent) refused the application in June 2009, stating it did not promote redress of past racial and gender discrimination as required by section 27(1)(b) of the NWA. The appellant appealed to the Water Tribunal, which dismissed the appeal. The appellant then appealed to the High Court on questions of law under section 149 of the NWA.