Abstract The Upper Berg River Valley is one of the leading agricultural regions of the Cape Province. The Mediterranean type of climate is well suited to viticulture and deciduous fruit growing, although the mild winters make it necessary to exercise care in the selection of fruit varieties which are resistant to delayed foliation. The region is a leading producer of guavas and olives, but is only marginal for citrus fruit. Important problems facing the farmers in this region include the maintenance of the nitrogen content in the soil, the provision of adequate soil moisture during the dry summer months, and a dwindling labour supply as more and more Coloured labourers find work in industry. Large areas of mountain slope are covered by pine plantations owned by the Government, and there is abundant scope for further expansion. The main urban settlement is the town of Paarl which has numerous industries, most of which are concerned with processing local agricultural products. Throughout its history the development of the region has been profoundly influenced by external factors and, in the absence of a greatly expanded internal market, future development will continue to be dependent on such factors as prices and demands on overseas markets.