The hydrosocial contract theory, as a new theory in water discourse, should be investigated. The theory postulates that a number of transitions occur in society concerning the development of water resources and that these transitions can lead to a number of social instabilities. The Lesotho Highlands Water Project (LHWP) is a manifestation of the hydrosocial contract in that it was developed during transitions, not only with respect to water resources development but also along international political faultlines. These faultlines were, at times, the most influencing variables that impacted on the implementation of the LHWP.