In 2018 Cape Town faced the threat of becoming the first city in modern age to run out of drinking water and reach Day Zero, the day when due to a 3-year long drought the city’s taps are switched off and residents are compelled to fetch their daily 25 liters of water from communal taps. This time the city successfully managed to avoid the critical date; however, the underlying problems are not solved permanently, the future is not secured. The city is pushed forward to take action and „be a beacon in Africa through the progressive realization of Cape Town as a water sensitive city (CoCT, 2018A)”. However, water scarcity is further complicated by high levels of inequity and poor water quality in the city’s townships, where the legacy of apartheid is still present in forms of social and spatial segregation. The thesis seeks to explore and develop spatial strategies that can foster the transition towards a water sensitive Cape Town, while also providing inhabitants with equal access to water services and amenities. The Cape Town urban water cycle and resource flows are evaluated using the Water Mass Balance equation. The metabolic analysis is completed with spatial mapping of regional water flows, which reveals vulnerable territories and potential intervention zones. Three peri-urban cluster areas along different watercourses have been selected to showcase water sensitive design interventions focusing on the water-food-energy nexus. A micro scale design for Imizamo Yethu township exemplifies the details and technical aspects of implementing Water Sensitive Urban Design and Sustainable Drainage Systems. Spatial measures are translated into typologies to enhance their transferability as design principles to various locations. Besides the spatial strategies, the thesis provides recommendations on improving public participation in water governance by bridging the communication gap between local communities and decision-makers through catchment forums. The thesis concludes that the urban water cycle is an epitome of why we cannot ‘divide’ a city without serious consequences. As water flows through the city and interlaces neighbourhoods regardless of any border, Cape Town can only achieve its goal and become a water sensitive city if strategies address the whole urban ecosystem including still often neglected areas and marginalized communities.