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Abstract: The water resources management regime has shifted from one focusing almost exclusively on augmenting supply to one where ensuring access, equity and sustainability are an integral part of process. It is widely recognized that South Africa will face water scarcity in the near future. But ‘scarcity’, as we show in our case study, is a relative concept. This paper interrogates perceptions of scarcity in the small South African rural community of Greater Genadendal. Using a wide variety of data, we explore the intersection between poverty alleviation and adequate water supply. The results show that notwithstanding sufficient water being available, the community experiences what Mehta [Mehta, L., 2001. The manufacture of popular perceptions of scarcity: dams and water-related narratives in Gujarat, India. World Development 29 (12), 2025–2041] calls ‘manufactured scarcity’. This is due to inadequate infrastructure, institutional incapacity and a history of political inequality. In the case of Greater Genadendal, these forms of scarcity are present simultaneously leading to a very complex situation. Overcoming these types of scarcity, however, require more than just new infrastructure. They require socio-economic and socio-political types of intervention that target the bases for manufactured scarcity: abiding poverty and socio-inequality. However, there appears to be a lack of social capital, in particular the trust that would enable government and local people to work together for improved livelihoods and sustainable water supplies. Joint resource rehabilitation activities may be one way of building social capital and moving toward IWRM in the study area. [Copyright &y& Elsevier]