Minister of Water and Sanitation Nomvula Mokonyane said on Monday that unless drastic changes were made the economy could be affected by the lack of water.
"It's costing about R14 billion to deal with the backlog of water and sanitation infrastructure. It's time for government to position themselves differently," Mokonyane said during a briefing on the Infrastructure Investment Summit which will be taking place at the end of the month.
"We are one of that countries that are constrained by water availability...We have a responsibility to develop water for future generations."
The minister said that it was vital to maintain good relationships with neighbouring countries as water issues were a cross-cutting matter.
"The reality is that water is a cross-cutting matter that deals with peace and stability with surrounding countries as we rely on Lesotho for water."
The theme of the Investment Summit is "South African water open for business" and is aimed at introducing people to the opportunities available, as well as engaging in dialogues on how the crisis could be alleviated and turned into financial growth.
"Until something drastic happens, we stand a chance of seeing our economy not growing due to the lack of water," Mokonyane said.
The minister said the recent drought and floods were the worst in years, and called for change by all South Africans.
She added that there were already initiatives underway to assist people with understanding the need to preserve water.
"The summit should assist with contributing and exposing people to available opportunities, the constraints and solutions. Water has become the new gold."
The minister emphasised that maintenance and upgrading of the water and sanitation infrastructure were vital as South Africa was one of the few countries where water could be drunk directly from the tap.
"There must be an opening for young people and for women," Mokonyane said.