76. Mechanisms for provision of services

A municipality may provide a municipal service in its area or a part of its area through-

1. an internal mechanism, which may be-
   
   1. a department or other administrative unit within its administration;
   2. any business unit devised by the municipality. provided it operates within the municipality's administration and under the control of the council in accordance with operational and performance criteria determined by the council; or
   3. any other component of its administration; or
2. an external mechanism by entering into a service delivery agreement with-
   
   1. a municipal entity;
   2. another municipality;
   3. an organ of state, including:
      

      aa)	a water committee established in terms of the Water Services Act, 1997 (Act No. 108 of 1997);
      bb)	a licensed service provider registered or recognised in terms of national legislation; and
      cc)	a traditional authority;

   4. a community based organisation or other non-governmental organisation legally competent to enter into such an agreement; or
   5. any other institution, entity or person legally competent to operate a business activity.