The Theewaterskloof Dam is one of the features of Villiersdorp, and is significant for being the seventh-largest Dam in the Country. Here, you can enjoy activities on the Theewaterskloof Dam such as sailing, powerboating, freshwater angling, canoeing, power kite surfing and swimming. The Riviersonderend River provides the water flow which feeds into the Vyeboom Wetland and it has the highest unit runoff of all the areas that feed the Theewaterskloof Dam catchment. The dam is roughly an hour and a half's drive from Cape Town, a rather big dam that can hold as many as 480 million cubic metres of water when full. The surface area is 48 square kilometres that makes it something of an inland lake, rather than the image one has of an almost round, contained water catchment.

It is also part of the larger Riviersonderend-Berg River Project, a water scheme that received recognition from the South African Institute of Civil Engineers and is regarded as one of the solutions to the Cape's water problem, where the demand for water far outweighs the supply. The project links the Riviersonderend and Berg River catchment areas, capturing surplus winter run-off in to the dam, delivered via gravity through a series of tunnels to where it is needed. One can also camp on the eastern side of the dam in one of only seven campsites, each with access to electricity. For those who like fishing, Theewaterskloof is a prime largemouth bass spot and fishermen have boasted catches over 4 kilograms. Luckily the bass continue to increase in numbers after a period during which their existence in the dam was threatened by a combination of pollution, uprooting of trees, and the illegal introduction of Barbel and Carp.