The municipality is home to the capital city of the Mpumalanga province and hosts the head office of the provincial government. The municipality has a population of approximately 695,913 inhabitants. The city serves as a gateway to some of the best adventure activities in Southern Africa and, with its moderate climate, becomes a preferred tourist destination all year round. The location and its status of a capital city provide the municipality with a competitive advantage as a corridor for growth and development. Over the years the City of Mbombela has grown considerably due its status as a capital city and provincial administration of Mpumalanga province. With the recent amalgamation of the former Umjindi and former Mbombela Local Municipalities, the City is expected to grow rapidly and is heading towards Metropolitan status. The growth in the number of people and households has also placed tremendous pressure on the Municipality in eradicating the existing backlogs. The municipality’s budget is dominated by bulk water and reticulation projects in order to eradicate the existing backlogs within the municipal area.