The TCTA was established in 1986 by the Department of Water Affairs and Forestry with the purpose of constructing and financing infrastructure of the South African part of the Lesotho Highlands Water Project. In 2000, there were amendments in the notice of establishment, which resulted in TCTA undertaking additional projects other than the Lesotho Highlands Water Project. These included: funding of projects, debt management and construction of infrastructure. The responsibilities of the Department of Water Affairs remained that of revenue management, asset management (relating to operations and maintenance and asset register) and water resource management.