Agriculture figures prominently in Kapuka South's economy due to its rural location. Significant lignite coal deposits are also located in the vicinity of Kapuka South. The Ashers-Waituna coalfield contains roughly 746 tonnes of recoverable coal. Exploratory work has been undertaken, but commercial mining has not yet taken place.
Kapuka South formerly had a primary school, Kapuka South School. It was open in the first half of the 20th century. After its closure, the building became the Kapuka South Hall and between 2006 - 2008 became a Clay Target Gun Club.
- "Place Name Detail: Kapuka South". New Zealand Geographic Placenames Database. Land Information New Zealand. Retrieved 17 November 2007.
- Ministry of Economic Development, "South Island Lignite", lasted updated 8 August 2007, accessed 17 November 2007.
- National Register of Archives and Manuscripts, "Kapuka South School", accessed 17 November 2007.
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