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The KwaZulu-Natal Liquor Authority currently regulates liquor licensing and control of the liquor industry through the provisions of the KwaZulu-Natal, Act 06 of 2010 as amended. Since the enactment of the Constitution of South Africa, (No. 108 of 1996), the mandate to legislate on retail and micro-manufacturing liquor licensing is the exclusive legislative competence of provinces.

It is important to note that the previous legislation had failed to address the economic imperatives associated with the liquor industry, and also failed to regulate and control the social economic impact of the act on communities. Liquor licensing was also not perceived to be an economic activity, but merely became a compliance issue. This new Act, the KZN Liquor Licensing Act 06 of 2010, addresses the shortcomings of the previous legislation by installing measures that address proper regulation and control of the liquor industry in terms of its economic contribution, whilst balancing the social economic impact and its effect on communities.

The Liquor Authority is registered as a schedule 3C Public Entity in terms of the Public Finance Management Act.  The public entity is referred to as the KwaZulu-Natal Liquor Authority (KZNLA). The Liquor Authority was established in terms of the KwaZulu-Natal Liquor Licensing Act, 2010 (Act. No. 06 of 2010). The Act sets out the objectives that the province strives to achieve with regard to retail liquor licensing and micro manufacturing. It also extends beyond the process of licensing and includes objectives of balancing the congruent objectives of providing a stable social environment against promoting the growth of the liquor industry

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