# Lesotho Highlands Water Project disputes > Developing situation record from CLSTR: https://clstr.news/situations/lesotho-highlands-water-project-disputes > Updated: 2026-10-26T11:04:42.000Z. Sources: 2. Developments: 2. The Lesotho Highlands Water Project is facing scrutiny regarding environmental compliance and community compensation. The Lesotho Highlands Development Authority (LHDA) has initiated an investigation into suspected water pollution near the Sekoai River in Mokhotlong. Residents reported foamy water near a construction site for the Polihali transfer tunnel, managed by the Kopano Ke Matla Joint Venture. This contractor was previously suspended for 18 days following the discharge of acidic and oily wastewater into local rivers and the Katse reservoir. Simultaneously, legal challenges have emerged regarding the project’s impact on local populations. The Seinoli Trust has petitioned the Lesotho High Court to force the LHDA to release data concerning affected communities, arguing the information is necessary to verify if families received adequate compensation under the Lesotho-South Africa treaty. During the LHDA’s 40th annual stakeholder conference, residents raised concerns over environmental protection and compensation arrears. An Ombudsman report suggested that unpaid compensation for Phase I of the project could exceed M142 million by the end of 2025, with some individuals still awaiting payments for activities dating back over 30 years. ## Timeline ### 2026-10-26: Lesotho communities sue LHDA over water project data and compensation The Seinoli Trust is seeking a court order to force the LHDA to release data on communities affected by the Lesotho Highlands Water Project to evaluate compensation adequacy. 2 sources. https://clstr.news/cluster/lesotho-communities-sue-lhda-over-water-project-data-and-compensation ### 2026-10-16: Lesotho Highlands Water Project faces pollution investigation The Lesotho Highlands Development Authority is investigating suspected wastewater pollution in the Sekoai River caused by construction on the Polihali transfer tunnel. 2 sources. https://clstr.news/cluster/lesotho-highlands-water-project-faces-pollution-investigation --- Cite as: Lesotho Highlands Water Project disputes. CLSTR, https://clstr.news/situations/lesotho-highlands-water-project-disputes