The paper analyses and discusses the concept of integrated water resources management (IWRM) and its application in South Africa. The central characteristics of IWRM are discussed and another feature, good governance, is highlighted as being crucial for effective IWRM. The paper focuses on those features that distinguish water management challenges in developing countries from those experienced in developed countries (where most of the current definitions of IWRM originated). The case study discussed in this paper, the Mhlatuze Catchment in South Africa, was selected as being representative of a catchment situated in one of the country's 19 water management areas (WMAs) where attempts are being made to implement IWRM. The available evidence indicates that three sets of reasons are responsible for the failure to achieve full implementation of IWRM in the Mhlatuze Catchment. First, the national custodian of water resources - DWAF - continues to experience severe internal (technical capacity) problems that hinder its efforts to successfully manage the Usutu to Mhlatuze WMA (of which the Mhlatuze Catchment forms a part) as a unit. Secondly, while IWRM is, on paper, a key part of national policy, the concept has not been fully accepted and practiced by local water managers. Thirdly, a range of institutional challenges persist because there is insufficient alignment and cooperation between the policies of different government departments and the practices of different water use sectors that impact on water. (C) 2007 Elsevier Ltd. All rights reserved.