Abstract
The paper examines the social impacts of the Inanda Dam which is under construction on the Mgeni River in KwaZulu. The dam constitutes an infrastructural development to serve primarily the industrial and urban economy of white Natal. The building of the dam in the largest bantustan in South Africa has political implications since the local population are black with no political leverage to influence decision‐making regarding the development. Decision‐making in relation to the project, as well as the social impacts of relocation and compensation, relocation sites and the effects of relocation are examined. The institutionalized procedures for managing environmental impacts of development projects in South Africa contextualized in the political climate of apartheid are inadequate in minimizing the negative effects and reducing social conflict.