Although South Africa is not as fortunate as other countries with regard to regional groundwater resources, it does have local resources that, if correctly exploited and managed, could play a major role in meeting the country's water requirements. Yet groundwater at present contributes only some 13 per cent of South Africa's total water consumption. This, in a country that desperately needs to utilize all its available water resources. This paper examines the issue by looking briefly at South Africa's groundwater potential, the advantages offered by groundwater over surface water resources, case studies illustrating how these groundwater resources have been effectively utilized and some of the factors responsible for the under-utilization of the groundwater resources. It is concluded that groundwater is very much the Cinderella of the South Africa water industry, just waiting for its true potential to be recognized and brought to the fore.