1. Diamonds were discovered in South Africa in the 18th century, slaves and indentured servants were brought in from Asia and Africa to help with the production.
2. In 1910, South Africa became a politically independent nation, and with this came the legalization of many segregationist privileges.  It included limited land, stripped of their right to vote, limited travelling privileges, and a general disregard of human rights for non-whites.
 File:Daniel Francois Malan.jpg
Image source:  "Portrait-Daniel Francois Malan." Web 1 Feb 2010.
 Daniel Francois Malan - Prime Minister of South Africa from 1948-1954.  He was important because he was the first prime minister to administer the Apartheid Law of South Africa.  In the long run, this would begin a long chain of Nationalist Party prime ministers.  Here Malan is pictured attending a party for South Africa's government officials, lawyers and other important people.
3.  In 1948, Apartheid began in South Africa with the election of the Nationalist Party.  President Daniel Francois Malan won the election, because he enforced several policies that appealed to the people's belief in racial segregation.  He began passing policies that were passed by the white ruling minority in South Africa.
Nationalist Party flag in 1948.
Image source:  "National Party." CRW Flags. Web. 1 Feb 2010.
4. The first process of Apartheid was with the Population Registration Act.  Every South African was required to undergo racial classification by government officials.  Every person was classified as white, colored, Indian, and Native.
Group Areas Act of 1950, designed to seperate racial groups. 
This is a sign on Durban beach in South Africa.
Image source: "Group Areas Act." History of South Africa in the apartheid era. Web. 1 Feb 2010.
5. The following process was the Group Areas Act, which mapped out where each racial group lived.  Each group was to attend different schools and participate in separate political systems.   
6.   After, the Bantu Education Act was passed, the Native schools were stripped of most of their resources, and government funding was cut and it was based on a racial sliding schools.
                Overall, that is how apartheid law in South Africa started.