On the first point 4, it's something that many people don't realise. Water policy in this context is set on a National level. All these Youtubers and Facebook protestors don't understand that a Municipality can't simply shut off water to farms/mines. Various approaches were already discussed prior to the Water Act of 1998:

http://www.dwa.gov.za/Documents/Policies/nwpwp.pdf

But as it says in that document - it's National Policy. The government will need to make the call. There may well be provision for disaster areas, but the government doesn't think CPT qualifies.

On the second point 4, there's a already a health concern with regards to our current water supply. Cracks in pipes in the existing infrastructure allow impurities to enter our water supply. When the pipes are at full pressure this doesn't happen. However, when the pressure is dropped (as what is currently happening in various suburbs), the pressure is not enough to keep these impurities out, and you end up with a contaminated supply in some areas.