Abstract
The Lesotho Highlands Water Project Phase II (LHWP II) implementation in Mokhotlong district has generated bitter conflict between affected communities and the Lesotho Highlands Development Authority (LHDA). This conflict has been explained in terms of dissatisfaction by affected communities over compensation. This article argues that the compensation question is complex and that the LHDA failed to appreciate the complexity of the issue. As a result, it did not grasp the realities of displacement and resettlement and treated community losses like a transaction, which could be traded off at market value. It, thus, stresses the significance of the socio-cultural element and the need to consider this for any compensation policy. The conclusion is that conflict occurred due to the gap between the compensation package and realities of losses, which could result in the impoverishment of affected households.
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