An infrastructure system consists of external (bulk), connector (link) and internal infrastructure. Typically, in South Africa, a municipality is responsible for the provision of external infrastructure (e.g., electric substations and wastewater treatment plants) and a site developer would be responsible for provision of on- site ‘internal’ infrastructure (e.g., roads through a new residential community). However, it is often less clear who is responsible for the infrastructure that links the bulk and internal infrastructure. This problem can be overcome if infrastructure is treated as an internal engineering service to the extent that it only serves the land development area and as an external engineering service to the extent that it also serves other developments. Whilst not the case in South Africa, other countries that apply DCs have used this tool to fund public facilities such as schools and public transport.
