Lying along the border between western KwaZulu-Natal and the Kingdom of Lesotho, the Natal Drakensberg forms part of the eastern escarpment of southern Africa. This area is regarded as the most important mountain catchment in South Africa because of the high yield and quality of water it produces. The three largest rivers in KwaZulu-Natal, the Tugela, Mkhomazi and Mzimkulu, originate in the Drakensberg and support rural, agricultural, urban and industrial consumers in both KwaZulu-Natal and Gauteng. The value of water produced is estimated at over Rl50 million per annum. The high altitude wetlands found in the Park play a vital role in maintaining this precious resource and have particular significance for the maintenance of regular streamflow patterns and high water quality levels. The wetlands are also of major importance for nature conservation because of the diversity of endemic and Red Data plants and animals they sustain.

The Drakensberg catchments contain inter-connected system of wetlands, ranging from open water bodies such as mountain tarns and a variety of vleis and marshes, to intricate networks of stream and river courses. These wetlands are distributed in a complex mosaic throughout the altitudinal gradient of the mountains, and occupy a variety of positions in the landscape, ranging from small hanging systems high on valley sides to valley bottom marshes and extensive watercourses.

Although the prevailing topography does not generally favour the development of large wetlands, eleven wetland plant communities are represented due to the range of physical conditions under which the wetlands have developed. At least thirty six plant species which are partly or totally dependent on the wetlands are endemic to this area. A number of rare and threatened bird species also depend on these habitats, including wattled crane Grus carunculata and striped flufftail Sarothrura affinis.