This paper investigates changes to the health status of young children (aged 0–5 years) in the Kwazulu-Natal province of South Africa during 1993–98. In our estimation we explicitly take into account the potential endogeneity of household resources in affecting child health. In particular, we examine whether the effect of resources is differentiated by the source, the age and the sex of the recipient. Finally, we also take into account the panel structure of the data and conduct (household level) fixed effects estimation of the determinants of child health. The estimation results show that the state of child health has experienced marked improvement following the dismantling of apartheid. Our results point to the role of household resources and health infrastructure availability in improving the health status of children.