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Large dams can play an important role in rejuvenating economic and social development but are often associated with environmental degradation. The Mzimvubu Water Project will involve the building of two large multi-purpose dams, namely Ntabelanga and Laleni. A key anticipated benefit of the former is the expansion of irrigated agriculture. This article reveals that large areas surrounding the dam are, however, severely affected by soil erosion and that irrigation on these areas is likely to be unsustainable. Focus Group Discussions (FGDs) and interviews were held with members of two communities that will be affected by the dam to gauge community sentiments and anticipations. The FGDs revealed that despite respondents lived experiences of soil erosion, local narratives about it appear irreconcilable with geophysical facts. The one crucial anticipated dam dividend appeared to be support for large-scale irrigated agriculture. Rural anticipations that irrigated agriculture can counteract soil degradation caused by erosion are not supported by scientific evidence, and without appropriate community awareness programmes by the dam developers, the divergence between science facts and local views may in the future engender conflict between the community and other stakeholders. [ABSTRACT FROM PUBLISHER]