A key instrument of the agency would be the "release of well-located land and serviced sites for human settlement programmes", she said.
Speaking to Sapa after the briefing, Water Affairs Minister Lindiwe Hendricks said her department was on track to eradicate the bucket sanitation system from all established settlements around the country by the end of March.
Asked how many people continued to use the bucket system in South Africa's thousands of so-called informal settlements, she said establishing such a figure was difficult. Reports suggest many millions of people continue to live in informal settlements.
Earlier, responding to questions, Hendricks told journalists South Africa was not facing a water crisis, although there were concerns about water quality in some areas of the country. South African tap water was among the best in the world, with the department "continuously monitoring" water quality.
By the end of this year, about one million households would remain without a basic water supply. "By the end of the current MTEF period (2009/10), this backlog will
be reduced to about 870,000 households. "It will be possible to supply all people living in existing houses
with a basic water supply by 2012," she said.