Water Resources Management of the People’s Republic of China: Framework, Reform and Implementation [1st ed.] 9783030619305, 9783030619312

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Global Issues in Water Policy 26

Dajun Shen

Water Resources Management of the People’s Republic of China Framework, Reform and Implementation

Global Issues in Water Policy Volume 26

Editor-in-Chief Ariel Dinar, Department of Environmental Sciences, University of California, Riverside, CA, USA Series Editors José Albiac, Department of Agricultural Economics, Unidad Economia, CITA-DGA, Zaragoza, Spain Guillermo Donoso, Department of Agricultural Economics, Pontificia Universidad Católica de Chile, Macul, Chile Stefano Farolfi, CIRAD UMR G-EAU, Montpellier, France Rathinasamy Maria Saleth, Chennai, India

More information about this series at http://www.springer.com/series/8877

Dajun Shen

Water Resources Management of the People’s Republic of China Framework, Reform and Implementation

Dajun Shen School of Environment and Natural Resources Renmin University of China Beijing, China

ISSN 2211-0631 ISSN 2211-0658 (electronic) Global Issues in Water Policy ISBN 978-3-030-61930-5 ISBN 978-3-030-61931-2 (eBook) https://doi.org/10.1007/978-3-030-61931-2 © The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, expressed or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. This Springer imprint is published by the registered company Springer Nature Switzerland AG The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland

Preface

Since opening its gates to the world in the late 1970s, China has remained at the center of the international stage. In almost every aspect, the development of China has impressed the world, not only the social-economic development within the country, but in its involvement in international affairs. In the past 40 years, China has developed from a low-income entity to a middle-income economy that includes some highly developed regions. The development and management of water resources in China reflects these broader changes. Pushed by the rapid socio-economic progress, as well as structural changes in the economy and society, water resources development and use in China experienced a rapid increase in water consumption. That growth has now peaked and is being managed with the introduction of caps limiting further exploitation. The management has now shifted to improving the efficiency and quality of both the water resources and sector that manages it. Following this process and in pursuit of state-mandated targets, since the early 1980s, China has progressively established an advanced and comprehensive water resources management framework, promoted institutional reform within the water resources sector, and introduced a range of new management systems, all in an effort to respond to the limited water resources of the country and a range of complicated and evolving water issues and demands. China faces a variety of water issues. On the one hand, traditional water problems, such as water supply, flood control, and response to drought, remain at the center of decision-making, as is the case this year. On the other hand, emerging issues, such as demand management, pollution controls, and the efficient allocation of the available supplies, have an increasing significance. Moreover, these problems have become more complicated by the rapid social and economic transition. Therefore, water issues and policies in China span the full spectrum of global water challenges, ranging from those relevant to a developing economy to those faced by developed ones, from managing water quantity to managing water quality, from supply to demand, and from resource development to its management. On this basis, this book aims to present the breadth of water resources issues facing China together with a suite of solutions. With this objective in mind, a wide range of general and specific water resources management topics and case studies in China are analyzed, which involves a balanced review of the past, the present state, v

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and potential future developments. At the same time, the book considers issues at both the national and the regional and river basin levels. The book starts with a general introduction and overview of the hydrology, water resources and development, and water issues in China. The book then presents a series of general frameworks, including those representing the systems and institutions that underpin management in China, including those at the river basin scale. Afterward, specific issues are discussed, including water resources allocation and regulation, water rights system, water pricing, groundwater management, and water quality management. This is followed by an overview of policy, reforms, and innovations over the last 20 years, such as recycled water use management, the “Strictest Water Resources Strategy and Three Redlines,” the river and lake chief system, and water resources asset management. Case studies from Beijing and Shanghai, the Yellow River basin, northern China, and the Jiao River are also presented. The last chapters focus on climate change, the conclusion, and outlook. The summary chapter reviews the water policy changes since 1980, and outlook for the future. I have been fortunate that my career development has occurred in parallel with the development of water resources management in my country, which has allowed me to research, learn from, and promote China’s water policy reform. Starting in the late 1990s, my research initially focused on socio-economic aspects of water resources. I explored water pricing issues in China as a starting point, before moving into work related to institutional arrangements, water rights, and beyond. Therefore, while the book presents a record of water resources management of China over the past 40 years, it is also a record of my research over more than 20 years. Writing this book was a long and painful, though also very happy, process, in particular, for a non-native speaker of English. Thank you very much to Professor Ariel Dinar for including my book in Global Water issues, a significant contribution to water policy researches around the world. More important, it is your persistence, enthusiasm, and passion to work and research, which I felt when I had my Fulbright program at University of California, Riverside, which encouraged me to finish the book. Many thanks to my friends, colleagues, and students: Dr. Xuetao Sun and Dr. Bin Liu for allowing me the opportunity to be deeply involved in water resources management policy design and implementation in China; Mr. Robert Speed and Mr. Martin Coiser from Australia for helping me to develop the water rights framework; Profs. Zhongjing Wang and Hang Zheng for being happy to work with me all the time. Thanks to Ari Guna for helping me deal with the language editing. Many thanks to my family. My parents not only support and are proud of my studying all the time, but have also helped me to raise my two daughters for many years, as most Chinese seniors do; thanks to Jianghe and Jiangnan, both of you are always so lovely and sweet; thanks to Li Wen, although I do not smile all the time, you support my work without any complaint. And last, I would like to deliver my special thanks to my supervisors, Profs. Chuanyou Chen, Renqiong Su, Changming Liu, and Ruiju Liang.

Preface

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This year, 2020, is not a normal year. It is a time of change. In this year, I will have my first English book. Beijing, China August 2020

Dajun Shen

Contents

1

Physical Settings and Water Challenges . . . . . . . . . . . . . . . . . . . . . . . . . 1.1 Geographical Aspects . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1.1 Topography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1.2 Climate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.1.3 Rivers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2 Hydrology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2.1 Precipitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2.2 Evaporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.2.3 Runoff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3 Water Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3.1 Surface Water Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3.2 Groundwater Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3.3 Water Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 Water Resources Development and Use . . . . . . . . . . . . . . . . . . . . . . 1.4.1 Water Resources Development . . . . . . . . . . . . . . . . . . . . . . 1.4.2 Water Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5 Key Water Resource Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5.1 Serious Water Supply and Demand Conflict . . . . . . . . . . 1.5.2 Heavy Water Pollution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.5.3 Increasing Water Ecosystem Degradation . . . . . . . . . . . . 1.5.4 Low Water-Use Efficiency . . . . . . . . . . . . . . . . . . . . . . . . . 1.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 1 1 3 3 6 6 8 9 13 13 14 15 15 15 18 21 21 21 22 23 23 24

2

Water Resources Management Framework . . . . . . . . . . . . . . . . . . . . . . 2.1 Water Resources Management Framework . . . . . . . . . . . . . . . . . . . 2.2 Main Water Resources Management Systems . . . . . . . . . . . . . . . . . 2.2.1 Medium- and Long-Term Water Supply and Demand Planning System . . . . . . . . . . . . . . . . . . . . . . 2.2.2 Water Resources Allocation System . . . . . . . . . . . . . . . . . 2.2.3 Water Abstraction Permit System . . . . . . . . . . . . . . . . . . .

25 25 26 26 28 29

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2.2.4 2.2.5 2.2.6 2.2.7 2.2.8 2.2.9

Water Resources Fee System . . . . . . . . . . . . . . . . . . . . . . . Water Resources Justification System . . . . . . . . . . . . . . . . Planned Water Use System . . . . . . . . . . . . . . . . . . . . . . . . . Water Function Zoning System . . . . . . . . . . . . . . . . . . . . . Total Pollutant Discharge Volume Control System . . . . . Management System of Discharge Outlet into Water Body . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.10 Total Water Volume Control System . . . . . . . . . . . . . . . . . 2.2.11 Quota Management System . . . . . . . . . . . . . . . . . . . . . . . . 2.2.12 Metric Charging System . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.13 Overcharge for Plan/Quota-Exceeding Use . . . . . . . . . . . 2.2.14 Water-Saving System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.2.15 Groundwater Management System . . . . . . . . . . . . . . . . . . 2.3 Relationships Among Water Resources Management Systems . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.1 Water Resources Development and Use Process . . . . . . . 2.3.2 Management Responsibility . . . . . . . . . . . . . . . . . . . . . . . . 2.3.3 Timing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.4 Space . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.5 Technical Review and Administrative Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.6 Management Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . 2.3.7 Management Level . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Water Resources Management Institutions . . . . . . . . . . . . . . . . . . . . . . 3.1 Water Management Institutions Before 1949 . . . . . . . . . . . . . . . . . 3.2 MWR Between Oct. 1949–Mar. 1958: Water Resources Development and Agricultural Development . . . . . . . . . . . . . . . . . 3.3 MWP Between Mar. 1958–Mar. 1988: Water Resources Development and Power Development . . . . . . . . . . . . . . . . . . . . . . 3.3.1 MWP During February 1958–July 1967 . . . . . . . . . . . . . . 3.3.2 MWP During July 1967–January 1975 . . . . . . . . . . . . . . . 3.3.3 MWP During January 1975–February 1979 . . . . . . . . . . . 3.3.4 MWR Between February 1979 and March 1982 . . . . . . . 3.3.5 MWP During March 1982–March 1988 . . . . . . . . . . . . . . 3.4 MWR During Mar. 1988–Mar. 2018: From Construction to Water Resources Management . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.4.1 MWR During March 1988–March 1993 . . . . . . . . . . . . . . 3.4.2 MWR During March 1993–March 1998 . . . . . . . . . . . . . . 3.4.3 MWR During March 1998–March 2003 and March 2003–March 2008 . . . . . . . . . . . . . . . . . . . . . . 3.4.4 MWR During March 2008–March 2013 and March 2013–March 2018 . . . . . . . . . . . . . . . . . . . . . .

33 35 36 38 39 40 40 42 43 44 44 45 46 46 49 51 52 53 54 55 56 57 59 59 61 63 63 64 64 65 65 66 66 67 69 71

Contents

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3.5 3.6

74

MWR and Related Ministries After 2018 . . . . . . . . . . . . . . . . . . . . Summary: Transition of Water Resources Institutions in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

5

River Basin Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.1 Major River Basins and Water Resource Development . . . . . . . . . 4.1.1 River Basins and Water Resource Issues in China . . . . . . 4.2 River Basin Management in China: Legal Framework . . . . . . . . . 4.3 River Basin Management Systems in China: Implementation Design . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.1 River Basin Water Resource Monitoring and Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.2 River Basin Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.3 River Basin Water Resource Allocation . . . . . . . . . . . . . . 4.3.4 River Basin Water Resource Protection . . . . . . . . . . . . . . 4.3.5 River Basin Flood Control . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.6 River Course Management . . . . . . . . . . . . . . . . . . . . . . . . . 4.3.7 Interprovincial Water Dispute Mediation . . . . . . . . . . . . . 4.4 RBO in China: Institutional Setting . . . . . . . . . . . . . . . . . . . . . . . . . 4.4.1 RBO Development After 1949 . . . . . . . . . . . . . . . . . . . . . . 4.4.2 Functions and Structures of RBOs . . . . . . . . . . . . . . . . . . . 4.5 Experiences from River Basin Management in China . . . . . . . . . . 4.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Water Resources Allocation and Regulation . . . . . . . . . . . . . . . . . . . . . 5.1 Water Resource Allocation in China . . . . . . . . . . . . . . . . . . . . . . . . 5.1.1 River Basin and Regional Water Resources Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1.2 Allocation of Regional Supply to Water Abstractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.1.3 Water Resource Allocation in Public Water Supply System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2 Water Resource Regulation in China . . . . . . . . . . . . . . . . . . . . . . . . 5.2.1 River Basin and Regional Water Resource Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.2.2 Annual Water Abstraction Plan . . . . . . . . . . . . . . . . . . . . . 5.2.3 Annual/Seasonal Water Use Plan . . . . . . . . . . . . . . . . . . . 5.3 Water Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

80 83 85 86 86 93 94 94 95 96 97 97 98 98 99 99 104 108 110 111 113 115 115 120 121 122 122 123 123 125 127 127

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7

Contents

Water Rights System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.1 The Development of the Water Rights System Framework in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2 Water Rights Legal Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2.1 Constitution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2.2 General Principles of Civil Law . . . . . . . . . . . . . . . . . . . . . 6.2.3 Property Rights Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.2.4 Water Law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3 Water Rights in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3.1 Ownership Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3.2 Collective Use Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3.3 Regional water rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3.4 Water Abstraction Rights . . . . . . . . . . . . . . . . . . . . . . . . . . 6.3.5 Water Rights Certificate and Water Ticket . . . . . . . . . . . . 6.4 Challenges and Suggestions to Improve Water Rights System Development in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.4.1 Challenges to Implementation of a Water Rights System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.4.2 Recommendations for Implementing Water Rights System in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

129

139 140 140

Water Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1 Water Pricing Framework in China . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1.1 Water Resources Fee/Tax . . . . . . . . . . . . . . . . . . . . . . . . . . 7.1.2 Water Supply Tariff from Hydraulic Engineering . . . . . . 7.1.3 Urban Water Supply Tariff . . . . . . . . . . . . . . . . . . . . . . . . . 7.1.4 Wastewater Collection and Treatment Tariff . . . . . . . . . . 7.1.5 Pollutant Discharge Fee/Tax . . . . . . . . . . . . . . . . . . . . . . . . 7.2 Water Resources Fee/Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.3 Water Supply Tariff from Hydraulic Engineering . . . . . . . . . . . . . . 7.4 Urban Water Supply Tariff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.5 Wastewater Collection and Treatment Tariff . . . . . . . . . . . . . . . . . . 7.6 Pollutant Discharge Fee/Tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.7 Some Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.7.1 Nature of Water and Its Services . . . . . . . . . . . . . . . . . . . . 7.7.2 Cost Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.7.3 Water Price Burden . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.8 Suggestions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.9 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

143 144 144 145 145 146 146 147 154 158 162 165 167 168 168 169 169 172 172

130 133 133 134 134 134 135 136 136 136 137 138 138 138

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8

Groundwater Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1 Groundwater Resources and Development in China . . . . . . . . . . . 8.1.1 Groundwater Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.1.2 Groundwater Development and Use in China . . . . . . . . . 8.1.3 Groundwater Development Problems . . . . . . . . . . . . . . . . 8.2 Groundwater Management System in China . . . . . . . . . . . . . . . . . . 8.2.1 Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2.2 Institution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2.3 Main Management Instruments . . . . . . . . . . . . . . . . . . . . . 8.3 Problems with Groundwater Management in China . . . . . . . . . . . . 8.4 Suggestions to Improve Groundwater Management in China . . . . 8.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

175 176 176 176 178 183 183 184 186 191 193 196 196

9

Water Quality Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.1 Legal Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.2 Institutional Arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3 Management Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3.1 Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3.2 Planning . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3.3 EIA and “Three-Simultaneous” for Construction Project . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3.4 Function Zones . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3.5 Total Discharge Volume Control System for Key Water Pollutants . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3.6 Permits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3.7 Economic Incentives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3.8 River/Lake Chief System . . . . . . . . . . . . . . . . . . . . . . . . . . 9.3.9 Drinking Water Source Protection Zone . . . . . . . . . . . . . . 9.4 Key Issues in Water Quality Management in China . . . . . . . . . . . . 9.5 Suggestions and Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . 9.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

199 201 205 208 208 210

10 Recycled Water Use Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.2 Recycled Water Reuse in China . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.3 Recycled Water Reuse Policy in China . . . . . . . . . . . . . . . . . . . . . . 10.4 Recycled Water Reuse Management in China . . . . . . . . . . . . . . . . . 10.4.1 Standards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.4.2 Institution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.4.3 Management Instruments . . . . . . . . . . . . . . . . . . . . . . . . . . 10.5 Issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.5.1 Nature of the Recycled Water Use . . . . . . . . . . . . . . . . . . . 10.5.2 Safety . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.5.3 Economic Feasibility . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

221 221 222 229 234 234 235 235 237 237 237 238

211 212 212 213 214 214 214 215 217 219 219

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10.5.4 River Basin Management . . . . . . . . . . . . . . . . . . . . . . . . . . 239 10.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240 11 The River and Lake Chief System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.1 Development Process . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2 System Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2.1 Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2.2 Institutional Setting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2.3 Responsibilities of the River Chiefs . . . . . . . . . . . . . . . . . 11.2.4 Key Tasks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2.5 Supporting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2.6 Lake Chief System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.2.7 Institutional Framework Related to Water . . . . . . . . . . . . 11.3 System Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.4 Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.5 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 The Strictest Water Resources Management Strategy and Its Three Red Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1 Water Resources and Management Challenges in 2008 . . . . . . . . 12.1.1 Water Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.1.2 Water Resources Management . . . . . . . . . . . . . . . . . . . . . . 12.2 Strategic Framework for the “Strictest Water Resources Management Strategy” . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.2.1 Objectives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.2.2 Guiding Principles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3 Key Tasks: Three Red Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3.1 Strengthening Management of Water Resources Development Redline to Implement Control of Total Water Use . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3.2 Strengthening Management of Water-Use Efficiency Redline to Promote Water-Saving Society Development . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.3.3 Strengthening Management of Water Function Zone Pollutant Assimilation Redline to Control Pollutant Discharge Into Waters . . . . . . . . . . . . . . . . . . . . . 12.4 Implementation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.4.1 Decision on Speeding Water Sector Development and Reform, 2011 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.4.2 Opinions on Implementing the Strictest Water Resources Management Strategy, 2012 . . . . . . . . . . . . . . . 12.4.3 Assessment Methods to Implement the Strictest Water Resources Management Strategy, 2013 . . . . . . . . .

241 242 243 243 244 244 245 247 247 248 249 250 252 252 253 254 254 255 257 258 259 261

261

263

264 265 265 266 266

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12.4.4 Assessment Implementation Plan for Implementation of the Strictest Water Resources Management Strategy, 2014, and the 2016 Assessment Implementation Plan for Implementation of the Strict Water Resources Management Strategy for 13th Five-Year Plan . . . . . . . . 12.4.5 Assessment Results for 2014–2017 . . . . . . . . . . . . . . . . . . 12.5 Conclusion and Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 Water Resource Assets Management Reform . . . . . . . . . . . . . . . . . . . . 13.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2 General Framework . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2.1 General Reform Plan of the Eco-Civilization System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2.2 Natural Resources Unified Clarification and Registration Method (Trial) and 2019 Natural Resources Unified Clarification and Registration Temporary Method . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2.3 Guidance on the System for Paying and Usage of Resources for Publicly Owned Natural Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.2.4 Guidance to Comprehensively Promote the Reform of the Natural Resource Assets Property Rights System . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.3 Reforms of the Management of Water Resource Assets . . . . . . . . 13.3.1 Institutional Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.3.2 Key Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13.4 Conclusion and Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 Water Resource Allocation and Regulation in Yellow River Basin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.2 Water Resource Allocation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.2.1 1987 Water Resource Allocation Plan . . . . . . . . . . . . . . . . 14.2.2 Monthly Allocation in 1998 . . . . . . . . . . . . . . . . . . . . . . . . 14.2.3 Yellow River Water Resources Regulation Management Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.2.4 Water Resource Allocation in the Hangjin Irrigation District . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.3 Water Resource Regulation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.3.1 Water Resource Regulation of the Yellow River . . . . . . . 14.3.2 Water Use in HID . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.4 Water Trade in the Yellow River . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.5 Discussions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

xv

269 270 270 273 275 275 276 277

278

280

280 284 284 286 289 289 291 291 293 293 293 296 296 297 297 299 301 302

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Contents

14.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 306 15 Agricultural Water Management in Northern China . . . . . . . . . . . . . 15.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.2 Agricultural Water Use and Agricultural Production in Northern China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.2.1 Agricultural Water Use and Production in China . . . . . . . 15.2.2 Agricultural Water Use and Production in Northern China . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.3 Agricultural Water Resources Management Framework . . . . . . . . 15.3.1 Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.3.2 Legal and Policy Framework . . . . . . . . . . . . . . . . . . . . . . . 15.4 Key Sectoral Reforms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.4.1 Institutional Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.4.2 Investment Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.4.3 Pricing for Agricultural Water Use . . . . . . . . . . . . . . . . . . 15.4.4 Agricultural Water Rights Reform . . . . . . . . . . . . . . . . . . . 15.4.5 Allocating Water for Agriculture and Regulating Agricultural Water Use Structures . . . . . . . . . . . . . . . . . . . 15.5 External Factors Impacting Agricultural Water Resources Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.5.1 Multi-channel Financing . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.5.2 Energy Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.5.3 Grain Production Direct Subsidy Policy . . . . . . . . . . . . . . 15.6 Field-Level Efforts to Improve Agricultural Water Resources Management . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.6.1 Tube Well Ownership and Groundwater Trade . . . . . . . . 15.6.2 Application of Water-Saving Technologies . . . . . . . . . . . 15.6.3 Water and Fertilizer Integrated Technology . . . . . . . . . . . 15.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 Integrated Urban and Rural Water Affair Management Reform: Shanghai and Beijing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.2 Institutional Basis for Reform . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.3 Reform Progress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.4 Shanghai . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.5 Beijing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.6 Discussion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16.7 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

307 307 308 308 309 311 311 314 318 318 321 324 329 332 334 334 335 336 336 337 337 338 338 340 343 343 345 346 349 352 356 358 359

Contents

xvii

17 Environmental Flow Definition and Management: A Case Study of the Jiaojiang River, Zhejiang Province . . . . . . . . . . . . . . . . . . 17.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.2 Environmental Flow Research and Management in China . . . . . . 17.3 Environmental Flow Assessment and Water Resources Planning in the Jiaojiang River, Zhejiang Province . . . . . . . . . . . . 17.3.1 Brief Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.3.2 Environmental Flow Definition . . . . . . . . . . . . . . . . . . . . . 17.3.3 Development of Water Resource Management Model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17.3.4 Water Resources Allocation Plan Scenarios . . . . . . . . . . . 17.3.5 Analyses of Modeling Results . . . . . . . . . . . . . . . . . . . . . . 17.3.6 Recommended Water Resources Allocation Plan . . . . . . 17.4 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

386 388 390 404 406 407

18 Climatic Change and Water Resources . . . . . . . . . . . . . . . . . . . . . . . . . . 18.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.2 Activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.3 Precipitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.3.1 Observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.3.2 Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.4 Water Resources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.4.1 Observations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.4.2 Estimates . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.5 Recommendations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18.6 Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

409 409 410 411 411 417 418 418 421 423 426 426

19 Review and Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.1 Water Resources Development and Use Since 1949 . . . . . . . . . . . 19.2 Water Resources Management Since 1978 . . . . . . . . . . . . . . . . . . . 19.2.1 Legislation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.2.2 Institutions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.2.3 Key Management Instruments and Activities . . . . . . . . . . 19.3 Water Resources Policy After 1980 . . . . . . . . . . . . . . . . . . . . . . . . . 19.3.1 1980s: Improving Benefits . . . . . . . . . . . . . . . . . . . . . . . . . 19.3.2 1990–1998: Repositioning Role . . . . . . . . . . . . . . . . . . . . . 19.3.3 1998–2009: Redefining the Water–Human Relationship . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19.3.4 Post-2009: Market-Oriented Final Solution . . . . . . . . . . . 19.4 Outlook . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

431 432 433 433 433 434 435 435 437

361 361 362 363 363 365

440 444 447 450

Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 453

Abbreviations

CPC EIA EPAD FDZ HID MEE MEM MEP MLR MNR MOHURD MWP MWR NCP NDPC NDRC NHC NPC PRC RBO RDZ SEPA WAB WAD WRB WUA YRCC

Communist Party of China Environmental impact assessment Environmental protection administrative department Forbidden-development zone Hangjin County Yellow River Southern Bank Irrigation District Ministry of Ecology and Environment Ministry of Emergency Management Ministry of Environmental Protection Ministry of Land and Resources Ministry of Natural Resources Minstry of Housing and Urban-Rural Development Ministry of Water and Power Ministry of Water Resources North China Plain National Development and Planning Commission National Development and Reform Commission National Health Commission National People’s Congress People’s Republic of China Riverbasin organization Restricted-developed zone State Environmental Protection Agency Water affair bureau Water administrative department Water resources bureau Water user association Yellow River Water Resources Commission

xix

Chapter 1

Physical Settings and Water Challenges

Abstract This chapter provides a general description, analysis, and summary of geography, hydrology, and water resource development in China. The monsoon and China’s variety of landscapes result in significant regional differences in terms of the hydrological cycle, water resources, and related issues. The regional distribution of water resources is uneven and not compatible with the distribution of other resources, such as population and land. The seasonal and inter-year variations are great. Therefore, the natural endowment of water resources in China is insufficient, with per capita and per unit of cultivated land totals lower than world averages; water resources have become a key constraint in regional social and economic development. More importantly, northern China, with its landscape impacted by human activities and climate change, has had a significant decrease in water resources, intensifying conflicts over water supply and demand. Keywords Hydrology · Water resource · Uneven distribution · Water resource development · Water shortage · Water pollution

1.1 Geographical Aspects 1.1.1 Topography China, in the southeast of Eurasia, faces the Pacific Ocean on the southeast, stretches northwestward to the interior of Asia, and borders the South Asia subcontinent on the southwest. As the world’s third largest country in area, China has a vast territory, which spans about 62° in longitude, from E135°5’ to E73°40’, and about 50° in latitude, from N4°15’ to N53°31’. It covers an area of 9,600,000 km2 , about 1/15 of the total global land surface. The general tendency of the topography of China is higher elevations in the west and lower elevations in the east. China’s topography is divided into three terracing The data on hydrology and water resources come from the national water resources comprehensive plan, which was published by General Institute of Water and Power Planning (2014) Assessment for Water Resources and its Development and Use. China Water and Power Publisher, Beijing. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_1

1

2

1 Physical Settings and Water Challenges

Fig. 1.1 China topography Sources MNR, China. Permission granted by MNR on its website subject to proper citation

grades from west to east, which have significant influence on the distribution of precipitation and water resources (Fig. 1.1). The highest terrace in China is the Qinghai–Tibet Plateau, generally over 4,000 m above sea level with a series of parallel mountain ranges and valleys and numerous snowy peaks. Mountain ranges include the Kunlun, the Karakorum, the Altun, the Qilian, the Tanggula, the Gangdise, the Himalayas, and the Hengduan Mountains. The area also features many lakes. The highest mountain peak in the world, Mount Everest of the Himalayas, is 8,844 m. On the Qinghai–Tibet Plateau, because of the high elevation, the atmosphere is thin, and precipitation is scarce. At the edge of the plateau, the intensive upward airflow brings more precipitation. The areas to the north of the Qinghai–Tibet Plateau and the eastern part of Sichuan Province, with elevations between 1,000 and 2,000 m, constitute the second terrace, which includes highlands such as the Inner Mongolia Plateau, the Loess Plateau, and the Yunnan–Guizhou Plateau. The region also features the Altay, Tianshan, and Qinling Mountains and large basins such as the Junggar Basin, the Tarim Basin, and the Sichuan Basin. The northern edge of the summer monsoon may reach these areas, so annual precipitation is higher than that in the Qinghai–Tibet Plateau. The third terrace is the vast area extending from east of the Da Hingganling Mountains, the Taihang Mountains, the Wushan Mountains, and the Yunnan–Guizhou Plateau to the coast, with interlocking distributions of hilly lands and plains. The

1.1 Geographical Aspects

3

elevation of most hills is below 1,000 m, and the elevation of the coastal plain areas is less than 50 m. In this area, the summer monsoon prevails, so precipitation is plentiful. In China, mountainous areas account for nearly 33% of the total territory, the plateau areas 26%, and hilly areas 10%, whereas the intermountain basins are 19% and the plain areas only 12% of the total territory.

1.1.2 Climate Monsoon is the predominant feature of the climate in China. With most of its territory under the influence of the southeast and southwest monsoons, those areas are humid and have ample rainfall, while the northwest is dry and rainfall there is scarce. It is also typical that prevailing wind directions shift abruptly from northerly in winter to southerly in summer, with precipitation mostly in the warm half of the year. The vast area of East China and most areas of South China are controlled by the East Asian monsoon. Generally, in summer, these areas are affected by the oceanic air current, whereas in winter, they are controlled by the continental air current. This results in a dry winter and wet summer, although there is some precipitation even in the dry season. The southern part of Tibet and most of Yunnan Province belong to the southwest monsoon climate zone in summer, and the rainy and dry seasons can be easily distinguished. Owing to the winter monsoon from Siberia and the Mongolian Plateau, in most of China, the winter temperature is 5–18 °C lower than in other locations at the same altitude. Due to the oceanic and continental influences, the humidity varies greatly with the distance from the sea. From southeast to northwest, the humid, semi-humid, semiarid, and arid zones distribute accordingly. In the southeast coastal area, the annual average relative humidity is 77–78%, while in the inland area in Xinjiang, it is only 40%. China can be divided into nine climatic zones plus the Qinghai–Tibet climatic zone. In eastern China, from south to north, are south, medium, and north tropic zones; south, medium, and north subtropic zones; and south, medium, and north temperate zones. The heat decreases from south to north. The south tropic zone is mainly the islands in the South China Sea, with an annual average temperature exceeding 25 °C and without winter. The north temperate zone is located at the north side of Da Hinggaling Mountain, with an annual temperature of −5 °C and without summer. Thus, the climates in the south and the north are clearly different.

1.1.3 Rivers China has a large number of rivers. According to the First National Census for Water (MWR, National Bureau of Statistics 2013), there are 45,203 rivers with

4

1 Physical Settings and Water Challenges

individual catchment areas of more than 50 km2 , and these have a combined length of 15,085,000 km. There are also 22,909 rivers with individual catchment areas of more than 100 km2 and a combined length of 1,114,600 km; 2,221 rivers with individual catchment areas of more than 1,000 km2 and a combined length of 386,500 km; and 228 rivers with individual catchment areas of more than 10,000 km2 and a combined length of 132,500 km (Table 1.1). Influenced by topography and climate, the distribution of rivers throughout China is very uneven. The overwhelming majority of rivers are in the eastern part of the country, where monsoon climate produces abundant rainfall. The fewest rivers exist in the arid northwest interior, where precipitation is scarce due to the continental climate. Most rivers are replenished by rainfall; some are fed by snow melt in spring and rainfall in summer and autumn. In addition, there are some rivers partly replenished by both melting glaciers and rainfall. The western feet of the Da Hinggaling, Yinshan, Helan, Qilian, Bayan Har Shan, Nyaingentangha, and Gangdise Mountains and the western border of the country represent the boundary between outflowing and inland river basins. All rivers on the east and south of the boundary flow into the Pacific and Indian oceans; those to the west and north belong to the inland river basins except for the Ertix River, which flows into the Arctic Ocean. The outflowing river basin occupies about 65.2% of the country’s territory; 58.2% of the country’s territory belongs to the drainage of the Pacific Ocean and 6.4% to the drainage of the Indian Ocean, while only 0.6% belongs to the drainage of the Arctic Ocean. The rest of the inland rivers occupy about 34.8% of the country’s total area. Table 1.1 Rivers in China Catchment area

>50 km2

>100 km2

>1,000 km2

>10,000 km2

Total

45,203

22,909

2,221

228

Heilongjiang River

5,110

2,428

224

36

Liao River

1,457

791

87

13

Hai River

2,214

892

59

8

Yellow River

4,157

2,061

199

17

Huai River

2,483

1,266

86

7

10,741

5,276

464

45

Rivers in Zhejiang and Fujian

1,301

694

53

7

Pearl River

3,345

1,685

169

12

Rivers flowing to sea in Southwest and Northwest China

5,150

2,467

267

30

Inland rivers

9,245

5,349

613

53

Yangtze River

Source MWR, National Bureau of Statistics (2013) Bulletin of first national census for water. China Water and Power Press: Beijing, p. 2 Permission granted by MWR, National Bureau of Statistics on its website subject to proper citation

1.1 Geographical Aspects

5

Among the outflowing rivers, those originating on the Qinghai–Tibet Plateau, including the Yangtze River, the Yellow River, the Lancang (Mekong) River, the Nujiang River, and the Yarlung Zangbo River, are the main great rivers in Asia. These rivers have distant sources and long courses with vast amounts of runoff and tremendous potential for hydropower resources. The Helongjiang, Liao, Hai-Luan, Huai, Pearl, and Yuanjiang Rivers, among others, initiate from the Inner Mongolia Plateau, the Loess Plateau, the west Henan Mountains, or the Yunnan–Guizhou Plateau. The common feature of the inland rivers is that the runoff is produced in the mountains and drains in the hillside plains. Within the inland river basins, there is about 1,600,000 km2 of land without runoff (Dept. of Water Resources, MWR 1992). China is also a country with a number of lakes. There are about 2,865 lakes with water surface areas larger than 1 km2 , for a total lake area of 78,000 km2 . Among them, 1,594 are freshwater lakes, 945 are saltwater lakes, and 166 are salt lakes, with 160 others (MWR, National Bureau of Statistics 2013). Generally, rivers in China are grouped into nine river basins for water resource planning and management. These are the Songhua-Liao, Hai, Huai, Yellow River, Yangtze River, Pearl River, Southeast China Rivers, Southwest China Rivers, and Inland River Basins (Fig. 1.2).

Riverbasins I

Songhua-Liao

VI

Pearl

II

Hai

VII

Rivers in Southeast

III

Yellow

VIII

Rivers in Southwest

IV

Huai

IX

Inland Rivers

V

Yangtze

Fig. 1.2 Riverbasins in China Sources Shen (2004). Permission granted by Dajun Shen

6

1 Physical Settings and Water Challenges

1.2 Hydrology 1.2.1 Precipitation According to the National Water Resources Comprehensive Plan, the mean annual precipitation of China is 6,177.5 km3 , equivalent to 649.8 mm, based on the 19562000 time series. This amount is lower than the global land surface average precipitation of 800 mm, and less than the average precipitation in Asia of 740 mm. Among the primary water resource zones, the rivers in Southeast China have the highest annual average precipitation, with 1,787.5 mm, and the rivers in Northwest China have the least, with only 161.2 mm (Table 1.2). The regional distribution of precipitation in the country is uneven, with more in southern China and less in northern China; in general, there is more precipitation in Table 1.2 Precipitations in China Primary water resources zones

Annual average mm

km3

Frequency (mm) Percentage

20%

50%

75%

95%

Songhua

504.8

471.9

7.6

550.8

502.9

466.4

416.9

Liao River

545.2

171.3

2.8

616.7

540.5

484.0

410.5

171.2

2.8

618.2

528.1

462.9

379.8

5.7

497.2

444.4

404.6

352.0

Hai River

534.8

Yellow River

445.8

Huai River

838.5

276.7

4.5

955.4

830.2

738.1

619.2

Yangtze River

1,086.6

1,937.0

31.3

1,150.1

1,084.7

1,034.5

964.3

Of which:Taihu Lake

1,177.3

43.4

0.7

1,329.2

1,167.6

1,048.0

890.7

Rivers in Southeast China

1,787.5

437.2

7.1

1,840.4

1,653.3

1,512.0

1,323.9

Pearl River

3544

1,549.7

897.3

14.5

1,689.6

1,542.8

1,430.7

1,279.1

Rivers in 1,088.2 Southwest China

918.6

14.9

1,169.7

1,085.5

1,020.8

931.9

Rivers in Northwest China

161.2

542.1

8.8

175.8

160.2

148.8

133.9

Northern Chinaa

328.2

1,987.5

32.2

350.3

327.7

310.3

286.3

Southern Chinab 1,214.4

4,190.0

67.8

1,250.8

1,199.1

1,159.5

1,103.1

China

6,177.5

100.0

664.2

642.2

625.2

600.9

a Including

649.8

the primary water resources zones of the Yangtze River, rivers in the Southeast China, Pearl River, and rivers in the Southwest China water resources zones b Referring to other five primary water resources zones Sources General Institute of Water and Power Planning (2014) Assessment for water resources and its development and use. China Water and Power Publisher, Beijing, p. 30 Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

1.2 Hydrology

7

the mountains and less in the plains. The annual average precipitation in southern China is 1,214.4 mm, with a corresponding volume of 4,190.0 km3 , accounting for 67.8% of the national total although southern China comprises only 36% of the country’s land area. The annual average precipitation in northern China is 328.2 mm, with a corresponding volume of 1,987.5 km3 , accounting for 32.2% of the national total and falling on 64% of the land. The annual average precipitation in the mountains is 770.2 mm and accounts for 85.2% of the national total, which in the plains is 342.7 mm, or 14.8% of the national total. Regionally, the precipitation in the country generally diminishes from southeast to northeast. In the coastal areas of the southeastern part of the country and in some regions of Southwest China, the mean annual precipitation is more than 2,000 mm, while in some places near the eastern sector of the China–India boundary the annual precipitation may be more than 5,000 mm. The annual precipitation depths for other regions are as follows: more than 1,000 mm in the regions to the south of the middle and lower reaches of the Yangtze River; 800–900 mm in the regions of the Qinling and Huai River Basin; and 400–800 mm in the North China Plain, Northeast China, the majority of Shanxi and Shaanxi Provinces, Gansu Province, the southeast part of Sichuan Province, and the eastern part of Tibet. The western part of Northeast China, Inner Mongolia, and the vast area to the west of Gansu Province receive less than 400 mm, and some other places receive less than 200 mm. The annual precipitation on the western ridge of Tianshan Mountain is more than 800 mm. Affected by the monsoon, the annual precipitation changes, as well as these changes among regions, are significant, and even more in northern China. The annual coefficient of variation (Cv) of precipitation from the Qilian Mountains, Qinling Mountains, and Huai River to the south of Yimeng Mountain is less than 0.25, and it is less than 0.20 in Southwest China. The Cv in North China is mostly greater than 0.30, and it is more than 0.40 in some areas. The Cv in Northeast China is generally around 0.30. In most parts of Northwest China, the Cv is above 0.40, including the Tarim, Qaidam, and Zhungeer Basins, where it exceeds 0.60. The ratio between the maximum and minimum annual precipitation is generally 2–3, and up to 4 or more in some areas in southern China. The ratio is less than 2.5 in southwest China, 3–6 in northern China, and highest in northwest China at more than 10. The seasonal distribution of precipitation in China is also uneven. Except for some small areas, the most precipitation occurs in summer, mainly in the form of storms. Except for the northeast part of Taiwan, the least precipitation occurs in winter. In spring and autumn, the volume of precipitation is between that in summer and winter, but it varies from place to place. In some places, the rainfall in spring is greater than that in autumn, and in other places the opposite is true. The ratio of the maximum consecutive-4-month precipitation to the annual is 0.6–0.8 in most regions, higher in the north, and lower in the south. The minimum consecutive-3-month precipitation for most regions occurs from December to February. In southern China, the minimum consecutive-3-month precipitation makes up 10% of the annual precipitation, but in northern China it comprises only 5% of the annual.

8

1 Physical Settings and Water Challenges

1.2.2 Evaporation 1.2.2.1

Potential Evaporation

The annual average potential evaporation (approximately used by an E601 evaporating dish) is higher in western China than in eastern China and is generally higher in the plains than in the mountainous areas. The lowest annual average potential evaporation is in northeast Heilongjiang Province, at only about 500 mm; the highest value appears in northwestern Inner Mongolia, where it is as high as 2,600 mm. The lower value regions, with less than 800 mm, are the Erguna, the Songhua River, the Yalujiang River, and the middle and lower reaches of the Yangtze River, covering 22% of the country’s land area. The higher value regions, with more than 1,200 mm, accounting for 33% of the national area, are the plains and river basins in Northwest China, the Qinghai–Tibet Plateau, and the hot and dry valleys in middle and western Yunan Province. Other regions, including most of the plain in Northeast China, the Hai River, the Huai River, the middle and lower reaches of the Yellow River, parts of the upper and lower reaches of the Yangtze River, the middle and lower reaches of the Pearl River, most of the rivers in Southwest China, and the eastern part of the Qinghai–Tibet Plateau, generally have annual average potential evaporation of between 800 and 1,200 mm. These regions account for about 45% of land area of the country. The seasonal variation of potential evaporation in China is striking. The annual variation of potential evaporation and its regional differences are smaller than those of precipitation, with larger changes in northern China. The Cv of potential evaporation varies from 0.07 to 0.18. The ratio of annual maximum and minimum potential evaporation is 1.3–1.9.

1.2.2.2

Real Evaporation

The annual average real evaporation for the country was 356.9 mm from 1980 to 2000, equivalent to 32% of the annual average potential evaporation and accounting for 55.0% of the annual average precipitation. Northern China averaged 253 mm, representing 21% of its potential evaporation and 77% of its precipitation. Southern China was 540 mm on average, 58% of the potential evaporation, and 44% of the precipitation (Table 1.3).

1.2 Hydrology Table 1.3 Evaporation in China

9 Primary water resources zones

Annual average real evaporation (mm)

Percentage of the precipitation (%)

Songhua

364.3

72.2

Liao River

399.1

73.2

Hai River

408.3

76.3

Yellow River

351.6

78.9

Huai River

590.8

70.5

Yangtze River

527.3

48.5

Rivers in Southeast China

701.8

39.3

Pearl River

717.6

46.3

Rivers in Southwest China

398.7

36.6

Rivers in Northwest China

132.0

81.9

Northern China

250.2

76.2

Southern China

538.3

44.3

China

356.9

54.9

Sources General Institute of Water and Power Planning (2014) Assessment for water resources and its development and use. China Water and Power Publisher, Beijing, p. 46 Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

1.2.3 Runoff 1.2.3.1

Surface Runoff

The river runoff of the country totals up to 2,738.8 km3 , 44% of the total volume of annual precipitation, which equals 288.1 mm in depth. The surface runoff in the country decreases from southeast to northwest. The distribution of annual runoff depth in the country decreases from 2,000 mm in the southeast to 25 mm in the northwest. The maximum runoff depth appears in the southeast corner of the Qinghai– Tibet Plateau and the northern part of Taiwan Island, reaching up to 5,000 mm. The area of the most humid zone, which is less than 5.8% of the country’s land, accounts for 27.5% of its runoff. The area of the most arid zone, with 24.9% of the land, accounts for only 0.8% of the runoff. The regional differences in annual runoff in China are even greater than those of annual precipitation. The mean annual runoff depth in southern China reaches 666.9 mm, whereas in northern China, the corresponding depth is only 72.3 mm. The total annual runoff in southern China comprises 84.0% of the national total. Among the nine primary water resource zones, the greatest annual runoff depth occurs in the rivers in Southeast China, reaching 1,086.1 mm; the Pearl River water

10

1 Physical Settings and Water Challenges

resource zone has the second greatest runoff, with 815.7 mm; and the least annual runoff occurs in the rivers of northwest China, with only 34.9 mm. The inter-year runoff variation mainly depends on precipitation changes and is influenced by factors such as runoff recharge, catchment size, and landscape. The runoff in China has large inter-year variations, larger in northern China than in southern China and larger in arid areas than in humid areas. The ratio of the maximum annual runoff to the minimum annual runoff is generally less than 5:1 in the southern part of the country and more than 10:1 in the northern part. The Cv of runoff is mostly above 0.5 in the Liao, Hai, and Huai River Basins, 0.2–0.4 in the Yellow River and Songhua River Basins, 0.15 in the Yangtze River and rivers in Southwest China, and 0.2–0.3 in the rivers in the Southeast and the Pearl River basin. In Northwest China, the Cv in rivers recharged by glaciers and snowmelt is generally below 0.25, while in rivers replenished by precipitation it is generally 0.3–0.7. The river runoff in China happens mostly in the summer and is higher in northern China. The ratio of the maximum consecutive-4-month runoff to annual runoff in northern China is generally 60–80%, although some hydrological stations in the Hai River Basin and the Yellow River Basin have exceeded 80%, and some stations in Northwest China have reached 90%. The ratio in Southern China is 50–70%, generally, and for the rivers in Southeast China it is only about 55%. As for the transboundary rivers, according to the 1956–2000 hydrological series, the runoff inflowing to China is 21.4 km3 , mostly in the Pearl River and the rivers in Northwest China. The outbound runoff is 727.88 km3 , of which the runoff crossing the border and flowing into other countries is 597.45 km3 and that flowing into the boundary rivers is 130.43 km3 (Table 1.4). The annual average runoff to the sea is 1,672.55 km3 . The Yangtze River Basin contributes 919.2 km3 of this, or 55% of the total. The Hai River Basin contributes only 10.13 km3 (Table 1.5). The change of runoff into the sea is affected by both natural and human factors, such as precipitation and water resource development. The Yellow River, the Huai River, the Hai River, and the Liao River have had a significant decrease in runoff into the sea due to increasing water resource development and use since the 1950s, particularly the Yellow and Hai Rivers. Water budget analysis shows that the values of hydrological elements and runoff coefficients are quite different between the outflowing area and the inland river basins, and also between the southern part and the northern part of the outflowing area. The depth of annual mean precipitation in the outflowing area of southern China is 1,204 mm, of which 46% is consumed in the form of land surface evaporation, and 54% contributes to river runoff. As for the outflowing area in northern China, the depth of annual mean precipitation is 546 mm, of which only 23% forms river runoff and 77% is consumed in the form of land surface evaporation. The depth of mean annual precipitation in the inland river basins is only 154 mm, of which 79% is lost in evaporation; the annual runoff depth is only 32 mm, and there is a large area without runoff. The mean runoff coefficient for the whole country is 0.44, which means 44% of China’s precipitation forms runoff.

1.2 Hydrology

11

Table 1.4 The transboundary river runoff Primary water resources zones

Inbound Volume (km3 )

Percentage (%)

Outbound Crossing boundary (km3 )

Into boundary rivera (km3 )

Total (km3 )

Songhua

0.75

3.5

1.53

114.15

115.68

14.33

14.34

2.0

Pearl River

9.06

42.3

1.35

1.67

3.02

0.4

Rivers in Southwest China

2.63

12.3

572.4

Rivers in Northwest China

8.9

41.9

22.17

0.2

Total

21.40

100.0

597.45

130.43

Liao River

Percentage (%) 15.9

572.4

78.6

22.44

3.1

727.88

100.0

a “Into

boundary river” refers to flows into a river, which is the boundary between two countries Sources General Institute of Water and Power Planning (2014) Assessment for water resources and its development and use. China Water and Power Publisher, Beijing, p. 65 Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

Table 1.5 Flows to the sea Primary water resources zones Liao River

1956–2000 19.05

1950s 19.19

1960s 23.18

1970s 18.31

1980s 16.96

1990s 17.82

Hai River

10.13

24.14

16.09

11.55

2.22

5.50

Yellow River

31.32

43.64

49.96

30.95

28.42

12.86

Huai River

54.17

65.19

63.43

52.27

49.16

48.04

Yangtze River

919.2

854.8

900.42

877.25

930.09

987.91

Rivers in Southeast China

187.1

193.56

171.26

184.97

184.69

203.26

Pearl River Total

451.6 1,672.55

438.66

427.39

477.35

1,639.19

1,651.70

1,652.64

438.4 1,649.94

466.90 1,742.30

Sources General Institute of Water and Power Planning (2014) Assessment for water resources and its development and use. China Water and Power Publisher, Beijing, p. 68 Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

1.2.3.2

Groundwater Runoff

According to the National Water Resources Comprehensive Plan, the total area for the whole country of China involved in groundwater resources computation is 8,451,110 km2 , and the total average annual groundwater resources amount to

12

1 Physical Settings and Water Challenges

821.81 km3 . The mountainous area of the country included in the evaluation is 6,784,790 km2 , with the average annual groundwater resources from that area at 677.02 km3 , making up 81.6% of the total. The average annual baseflow amount equals 655.77 km3 , which represents 97.6% of groundwater resources in mountainous areas. A mountainous area of 3,552,077 km2 is located in northern China with average annual groundwater resources equal to 137.70 km3 , of which the baseflow amount is 116.61 km3 , making up 84.7% of the total in this area. Mountainous regions of 3,232,713 km2 are distributed in southern China, with average annual groundwater resources of 539.33 km3 , almost all of which reverts to baseflow. The total plain area of the country involved in the groundwater evaluation is 1,666,320 km2 . The average annual plain groundwater resources equal 176.51 km3 , of which 102.46 km3 are derived from precipitation. The plain area in northern China involved in the groundwater assessment is 1,505,873 km2 . The corresponding average annual groundwater resources are 138.31 km3 , making up 78.4% of the total plain groundwater resources, of which 73.22 km3 are derived from precipitation. The plain area in southern China involved in groundwater resource evaluation is 160,447 km2 . The corresponding average annual groundwater resource is 38.20 km3 , making up 21.6% of the total plains resources, of which 29.24 km3 is derived from precipitation.

1.2.3.3

Hydrological Budget

The long-term mean annual precipitation of the country is 6,177.5 km3 , or 649.8 mm, of which 33% forms river runoff, 54% goes to land surface evapotranspiration, and 13% seeps into supply groundwater. The land evaporation from surface water bodies, plants and soils, and phreatic water evaporation is 55% of the precipitation. The river runoff, consisting of surface runoff directly supplied by precipitation and baseflow formed by groundwater discharge from precipitation infiltration, is 44% of the precipitation. The values of the water budget elements and their relations are different for different regions. In northern China, the total precipitation is 1,987.5 km3 , equal to 328.2 mm, of which 74% ends up in land evaporation, 15% forms surface runoff, and 11% infiltrates into groundwater. In southern China, the total precipitation is 4,190.0 km3 , or 1,214.4 mm, of which 45% ends up in land evaporation, 42% forms surface runoff, and 13% infiltrates into groundwater.

1.3 Water Resources

13

1.3 Water Resources 1.3.1 Surface Water Resources According to assessment of the hydrological series of 1956–2000, the surface water resources in China are 2,738.8 km3 , equivalent to a runoff depth of 288.1 mm. Among the 45-year runoff series, the maximum is 3,374.1 km3 in 1998, and the minimum is 2,300.5 km3 in 1978 (Table 1.6). The regional distribution of surface water resources in China is consistent with precipitation, with more in southern China and less in northern, more in mountainous areas and less in plains areas. Northern China has 437.8 km3 of surface water resources, 16% of the national water in 64% of the land. Southern China, with 36% of the land, contributes 2,301.1 km3 , 84% of the total. The mountainous area has 93% of the surface water resources, equivalent to 371 mm. The plain area has only 7%, equal to 75 mm in depth. Table 1.6 Surface water resources of China

Water resources zones

Annual average mm

km3

Percentage

Songhua

138.6

129.6

4.7

Liao River

129.9

40.8

1.5

Hai River

67.5

21.6

0.8 2.2

Yellow River

76.4

60.7

Huai River

205.1

67.7

2.5

Yangtze River

552.9

985.6

36.1

Of which: Taihu Lake

434.1

16.0

0.6

1,086.1

265.6

9.6

Pearl River

815.7

472.3

17.2

Rivers in Southwest China

684.2

577.5

21.1

Rivers in Northwest China

34.9

117.4

Northern China

72.3

437.8

Southern China

666.9

2,301.0

84

China

288.1

2,738.8

100

Rivers in Southeast China

4.3 16

Sources General Institute of Water and Power Planning (2014) Assessment for water resources and its development and use. China Water and Power Publisher, Beijing, p. 55 Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

14

1 Physical Settings and Water Challenges

1.3.2 Groundwater Resources The total amount of groundwater resources in the country is 821.8 km3 , of which the amount with salinity not exceeding 1 g/L is 797.1 km3 , and the amount with salinity of 1–2 g/L is 24.7 km3 . Groundwater resources in northern China equal 245.8 km3 , accounting for 30% of the national total. Groundwater resources in southern China equal 576.0 km3 , accounting for 70% of the national total (Table 1.7). The groundwater resources in the plain area are 176.5 km3 , of which the volume with salinity of less than 1 g/L and 1–2 g/L are 146.2 km3 and 30.3 km3 , respectively. The groundwater resources in the northern plains area are 138.3 km3 , and 38.2 km3 is from southern China. The groundwater resources in the country’s mountainous areas are 677.0 km3 , of which 21% is in northern China and 79% in southern China. Table 1.7 Groundwater resources in China Primary water resources zones

Resources (km3 )

Songhua

47.79

25.05

23.27

24.38

Liao River

20.29

9.76

8.57

11.67

Hai River

23.49

10.81

6.71

16.04

Yellow River

37.59

26.33

21.96

15.46

Huai River

39.70

12.73

8.78

27.99

Yangtze River

249.20

225.58

225.41

24.76

Rivers in Southeast China

65.57

61.02

61.02

5.60

Pearl River

Mountain Resources

(km3 )

Of which, river baseflow (km3 )

Plain resources (km3 )

116.26

108.76

108.76

7.83

Rivers in 143.97 Southwest China

143.97

143.97

0

Rivers in 76.96 Northwest China

53.02

47.32

42.78

Northern China

245.81

137.70

116.61

138.31

Southern China

576.00

539.33

539.16

38.20

Total

821.81

677.02

655.77

176.51

Sources General Institute of Water and Power Planning (2014) Assessment for water resources and its development and use. China Water and Power Publisher, Beijing, p. 96 Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

1.3 Water Resources

15

1.3.3 Water Resources According to the data series from 1956 to 2000, the total water resources in China are 2,841.2 km3 , of which the surface water resources amount to 2,738.8 km3 , about 96% of the total. The non-overlap between groundwater and surface water resources is 102.4 km3 , about 4% of the total (Table 1.8). Similar to precipitation, water resources are more plentiful in southern China and less so in northern China, and they are more plentiful in mountainous areas and less so in the plains. The water resources in northern China are 526.7 km3 , accounting for 19% of the national total. In southern China, water resources are 2,314.5 km3 , 81% of the national total. The water resources in the mountainous area amount to about 90%, whereas the plains area accounts for only about 10%. At present, in comparison with the social and economic development of the country, water resources in China have the following characteristics: limited per capita and land occupation, uneven regional distribution, large seasonal and interyear variations, obstacles to development and use, and asynchrony with economic development patterns. Owing to the large population and vast land mass, the average per capita and per unit of cultivated land water resources are very low. The average water resource per capita in China is 2,210 m3 , one-third of the world average. The per unit of cultivated land value is only 21,600 m3 per ha, about half of the world average. Moreover, the distribution of water resources does not match the land resources and economic activities. Southern China has 36% of the land, 54% of the population, 40% of the arable land, and 56% of the GDP of the country, but it has 81% of the water resources. Northern China has 64% of the land, 46% of the population, 60% of the arable land, and 44% of the GDP but only 19% of the water resources. Collectively, the Yellow River, Huai River, and Hai River Basins account for 15% of the land, 35% of the population, 35% of the arable land, and 32% of the GDP of the country, but only 7% of the water resources, with a per capita amount of 457 m3 . These three river basins have been the most prominent regions in the water supply and demand conflict.

1.4 Water Resources Development and Use 1.4.1 Water Resources Development 1.4.1.1

Infrastructure Development

To effectively use water resources, China has developed a large number of storage, pumping, and water diversion projects since 1949. At the end of 2000, more than 80,000 reservoirs and 5.85 million ponds had been constructed, with a total storage capacity of 575.4 km3 and an effective storage capacity of 312.1 km3 , 22% and

171.2

354.4

276.7

Hai River

Yellow River

Huai River

437.2

897.3

918.6

542.1

1,987.5

4,190.0

6,177.5

Rivers in Southeast China

Pearl River

Rivers in Southwest China

Rivers in Northwest China

Northern China

Southern China

Total

2,738.8

2,301.0

437.8

117.4

577.5

472.3

265.6

16.0

985.6

67.7

60.7

21.6

40.8

129.6

Surface water resource (km3 )

821.8

576.0

245.8

77.0

144.0

116.3

65.6

1.6

249.2

39.7

37.6

23.5

20.3

47.8

Groundwater resources (km3 )

102.4

13.5

88.9

10.2

0

1.4

1.9

1.6

10.2

23.4

11.3

15.4

9.0

19.6

Non-overlap volume (km3 )

2,841.2

2,314.5

526.7

127.6

577.5

473.7

267.5

17.6

995.8

91.1

71.9

37.0

49.8

149.2

Water resources (km3 )

0.46

0.55

0.27

0.24

0.63

0.53

0.61

0.41

0.51

0.33

0.20

0.22

0.29

0.32

Runoff coefficient

298.9

670.8

87.0

37.9

684.2

818.2

1,093.74

476.9

558.6

276.2

90.4

115.7

158.6

159.6

Runoff modulus (103 m3 /km2 )

Sources General Institute of Water and Power Planning (2014) Assessment for water resources and its development and use. China Water and Power Publisher, Beijing, p. 110 Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

43.4

Of which:Taihu Lake

1,937.0

171.3

Liao River

Yangtze River

471.9

Precipitation (km3 )

Songhua

Primary water resources zones

Table 1.8 Water resources in China

16 1 Physical Settings and Water Challenges

1.4 Water Resources Development and Use

17

12% of the annual average runoff, respectively. Of this storage, the large-scale1 projects contributed 72% of total storage and 64% of effective storage, respectively. These projects mainly distributed in central and eastern China, especially the Hai, the Yellow, and the Liao River Basins, where the total storage is greater than the annual average runoff. However, as far as the whole country is concerned, the ability to regulate and control runoff is relatively low compared to that of the United States, Canada, Russia, and Mexico. Nearly 840,000 diversion projects have been completed in the country, with a diversion capacity of 98,7000 m3 /s. Of this amount, large-scale diversion projects account for 71% of the total water diversion capacity and are located mainly near the Yellow River, Huai River, and Yangtze River, and the rivers in Northwest China. There are more than 300,000 pumping projects with a capacity of 36,400 m3 /s, of which large-scale pumping projects contribute 12% and are located mainly in the Huai, the Yangtze, and the Pearl River Basins. There are 89 water transfer projects across the nine primary water resource zones, with a total pumping and diversion capacity of 4,500 m3 /s. The water supply capacity of the diversion, pumping, and transfer projects in the country total 139,600 m3 /s, of which large-scale projects account for about 56%. In addition, there are more than 4.95 million groundwater wells, including more than 4.3 million electromechanical tube wells, mainly in the Yellow, Huai, and Hai Plain (Table 1.9).

1.4.1.2

Water Supply

The annual water supply capacity in 2000 was 645.9 km3 , of which surface water supply facilities provided 533.1 km3 , 83% of the total, and groundwater supplied 112.8 km3 . In northern China, surface water supplied about 66% of total capacity, and groundwater provided about 34%. In southern China, surface water provided most of the capacity, with groundwater supplying less than 5% (Table 1.10). According to the Water Resources Bulletin of China, the total water supply increased from 443.7 km3 in 1980 to 604.0 km3 in 2016, with an annual increase of 0.86%. The greatest increase occurred in 2013: 618.0 km3 (Nanjing Institute of Hydrology of Water Resources, China Institute of Water Resources and Hydropower Research 1998; Institute of Water and Power Planning, Ministry of Water and Power 1989; MWR 1998–2017) (Fig. 1.4). Surface water resources provided about 80% of the total supply, and groundwater supplied less than 20%. Other sources provided about 1%.

1 According to “Standard for rank classification and flood protection criteria of water and hydropower

project” (SL252) by MWR, large-scale project refers to projects such as reservoirs with capacity more than 100 million m3 , irrigation areas with capacity more than 500,000 mu (33,333 ha), annual water supply more than 300 million m3 , and fixed hydropower capacity more than 300 MW.

18

1 Physical Settings and Water Challenges

Table 1.9 Water supply infrastructure in 2000 Primary water resources zones Songhua

Storage No.

Diversion Large No. scale

Pumping Large-scale No.

Large-scale

Transfer Wells (1,000)

13,900

42

1,400

10

5,000

4

0

Liao River

4,300

38

1,700

10

2,000

0

0

305.7

Hai River

19,400

33

6,200

18

13,100

6

27

1,361.6

Yellow River

19,000

21

12,900

26

22,300

5

0

603.2

593,100

50

900

89

18,300 18

43

1,773.5

247,300 181

121,000 30

11

172.1

25,800 22

7

8.1

0

22.4

Huai River Yangtze River Of which:Taihu Lake

4,851,100 138

413.7

59,500

7

5,000

87

Rivers in Southeast China

262,500

36

230,700

2

55,600

Pearl River

143,100

84

214,000

3

60,100

8

3

196.1

Rivers in Southwest China

22,100

2

119,600

0

2,300

0

3

13

Rivers in Northwest China

900

23

1,500

94

600

0

2

94.4

Northern China

650,700 207

24,500 247

61,400 34

72

4,552.1

Southern China

5,278,700 260

811,600 186

239,000 38

17

403.6

Total

5,929,400 467

836,100 433

300,400 72

89

4,955.7

0

Sources General Institute of Water and Power Planning (2014) Assessment for water resources and its development and use. China Water and Power Publisher, Beijing, p. 239 Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

1.4.2 Water Use The total water use in China increased from 443.7 km3 in 1980 to 604.0 km3 in 2016. The greatest use occurred in 2013, at 618.0 km3 . Since 2013, the total water use has decreased (Nanjing Institute of Hydrology of Water Resources, China Institute of Water Resources and Hydropower Research 1998; Institute of Water and Power Planning, Ministry of Water and Power 1989; MWR 1998–2017) (Fig. 1.3). To some extent, water use in China has reached its peak (Fig. 1.4).

1.4 Water Resources Development and Use

19

Table 1.10 Water supply capacity of China in 2000 Primary water Water supply capacity (km3 ) resources Surface water zones Storage Diversion and Transfer Total pumping

Groundwater Total

Per capita water supply capacity(m3 )

Songhua

5.5

20.4

17.7

681

Liao River

6

6

0

12

12.2

24.3

443

Hai River

8.1

5.9

6

19.9

28.5

48.4

383

Yellow River

4.1

28.7

0

32.8

14.8

47.6

436

Huai River

14

19.8

69.3

346

0

25.9

43.5

22.5

13

49.5

Yangtze River 67.2

134

3.7

204.9 5.5

210.4 474

Of which:Taihu Lake

0.9

36.7

0.6

38.2

0.7

38.9

1,000

Rivers in Southeast China

12.5

20.2

0

32.7

1

33.7

490

Pearl River

36.8

48.9

0

85.7

2.9

88.5

598

Rivers in Southwest China

2.2

6

0

8.3

0.1

8.4

428

Rivers in Northwest China

15.3

46

0.2

61.4

10.3

71.7

2,620

Northern China

53

129.4

19.2

201.5 103.3

304.8 524

Southern China

118.7

209.1

3.8

331.6 9.5

341.1 502

Total

171.7

338.5

23

533.1 112.8

645.9 512

Sources General Institute of Water and Power Planning (2014) Assessment for water resources and its development and use. China Water and Power Publisher, Beijing, p. 241 Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

Agricultural water use decreased from 391.34 km3 in 1980 to 377.0 km3 in 2016. During this period, the greatest agricultural water use took place in 1997 and 2013, at 392 km3 . The least agricultural water use occurred in 2003, at 352 km3 . Currently, agricultural water use fluctuates between 370 and 380 km3 . Industrial water use increased from 45.7 km3 in 1980 to 131 km3 in 2016, for an annual increase of 2.96%. The greatest industrial water use happened in 2011, at 146 km3 . After 2013, industrial water usage decreased. Domestic water use increased from 6.66 km3 in 1980 to 82 km3 in 2016, for an annual increase of 7.23%. Due to urbanization, domestic water use is projected to increase continuously in the near future.

km3

20

1 Physical Settings and Water Challenges 700 600 500 400 300 200 100 0 1975

1980

1985

1990

surface water

1995 groundwater

2000

2005 others

2010 totoal

2015

2020

Year

Fig. 1.3 Annual water supply in China. * Others normally refer to the non-traditional water sources, including wastewater reuse, rainwater harvest, seawater desalination, salinity water, etc. Sources Nanjing Institute of Hydrology of Water Resources, China Institute of Water Resoources and Hydropower Research (1998); Institute of Water and Power Planning, Ministry of Water and Power (1989); MWR (1998–2017). Permission granted by Nanjing Institute of Hydrology of Water Resources, China Institute of Water Resources and Hydropower Research; Institute of Water and Power Planning, Ministry of Water and Power; and MWR on their websites subject to proper citation

Fig. 1.4 Annual water use in China Sources Nanjing Institute of Hydrology of Water Resources, China Institute of Water Resources and Hydropower Research (1998); Institute of Water and Power Planning, Ministry of Water and Power (1989); MWR (1998–2017). Permission granted by Nanjing Institute of Hydrology of Water Resources, China Institute of Water Resources and Hydropower Research; Institute of Water and Power Planning, Ministry of Water and Power; and MWR on its their websites subject to proper citation

Eco-environmental water use (calculated after 2003) increased from 8 to 14 km3 in 2016. Eco-environmental water use is projected to increase with the country focusing on eco-environmental protection.

1.5 Key Water Resource Issues

21

1.5 Key Water Resource Issues2 1.5.1 Serious Water Supply and Demand Conflict MWR estimates that, in meeting normal demand and not over-exploiting groundwater, the water shortage in the country is about 50 km3 in a normal year. Of more than 660 cities nationwide, two-thirds suffer a water supply shortage. About 110 of these cities are in a serious situation. Of 32 cities with a population of more than 1 million, 30 have long suffered from a water shortage. The annual amount of cultivated land suffering from drought is more than 20 million ha. Although as a general, total water use in China has been stabilized, the sectors are differentiated. Domestic water demand is still increasing swiftly after about 40 years of steady increase, caused by rapid urbanization and improved living conditions. Industrial water use, which is heavily influenced by industrial policy, has not been stable either. Demand for ecological and environmental use is increasing. This discrepancy between water supply and demand results in water struggles between industry and agriculture, between urban and rural areas, and between regions, as well as encroachment of ecological water use and groundwater overexploitation in some regions.

1.5.2 Heavy Water Pollution The discharge of pollutants has increased quickly over the past 40 years. A large amount of wastewater is directly discharged into bodies of water without proper treatment or meeting discharge standards. In addition to illegal discharge, agricultural pesticides and chemical fertilizers contribute to the deteriorating water environment in China. According to MWR, in 2016, the water quality in 235,219 km of rivers was assessed as Class I, II, III, III, IV, V3 , and worse than V amounting to 6.5%, 48.3%, 22.1%, 9.6%, 3.7%, and 9.8%, respectively. Among nine primary water resource zones, the water quality is generally better in the rivers in Southwest China, Northwest 2 the contents of this part mainly come from Shen (2014) Chap. 11 Water resources and its use. in: Liu C et al. (eds) China hydrogeography. Science Press, Beijing. 3 Class I is mainly applicable to source water and national nature reserves; Class II is mainly applicable to the first-level protection zone of the centralized surface drinking water source, the habitat of rare aquatic organisms, the spawning grounds of fish and shrimps, and the feeding grounds of larvae and juveniles; Class III is mainly applicable to the second-level protection zone of the centralized surface drinking water source, fish and shrimp wintering grounds, migration channels, fishery waters such as aquaculture areas, etc., and swimming areas; Class IV is mainly applicable to general industrial water-use areas and recreational water areas without direct human body contact; andClass V is mainly applicable to agricultural water-use areas and general landscape water areas.

22

1 Physical Settings and Water Challenges

China, the Yangtze River, the Pearl River, and the rivers in Southeast China, with Class I–III between 82 and 97%. The water quality in the Hai River, Yellow River, Huai River, Liao River, and Songhua River is worse, with Class I–III between 38.9 and 68.5%. The data from 544 provincial boundary stations in 2016 shows that 15.8 and 17.1% were rated Class IV–V and worse than Class V, respectively. Of 6,270 water function zones assessed, only 58.7% met the water quality targets (MWR 2017). Algae outbreaks occur in many lakes in China. The water-plentiful regions, such as the Pearl River Delta and the Yangtze River Delta, suffer from water shortages caused by water pollution. The quality of groundwater is also deteriorating. About 54% of the groundwater in the plain areas does not meet the water quality standards for domestic use. In some basins and regions, water pollution has extended from the tributary to the mainstream, from urban areas to rural areas, from the surface to underground, and from the land to the sea. Water pollution not only exacerbates the shortage of water resources but also directly threatens the safety of drinking water and population health, as well as affecting industrial and agricultural production and the safety of crops, resulting in huge economic losses.

1.5.3 Increasing Water Ecosystem Degradation Water resource development and use has greatly exceeded the amount of available water resources in some regions. This over-exploitation has led to rivers drying up, lakes shrinking, and land subsidence. In North China, the fact that “rivers are all dry, water is dirty, wetlands disappear, groundwater is depleted” poses a potential threat to ecological and economic security. More than 90 rivers across the country, including major rivers such as the Yellow River and the Liao River, have begun to dry up, resulting in serious problems in river function. Compared with the early 1950s, the national lake area has decreased by 15%, the number of lakes in the middle and lower reaches of the Yangtze River has been reduced by more than 50%, and natural wetland area has decreased by 26%. The reduction and loss of lakes and natural wetlands decrease the capacity of water resources to self-regulate and self-purify, exacerbate flood damage, and deteriorate water quality. The country has formed 164 groundwater overdraft areas with a total area of 190,000 km2 , with average annual groundwater overdraft volume exceeding 10 km3 . Land subsidence and sea water intrusion have occurred in some areas. The land subsidence area has reached 64,000 km2 ; more than 50 cities are threatened by serious land subsidence.

1.5 Key Water Resource Issues

23

1.5.4 Low Water-Use Efficiency Despite water shortages in many regions, water-use efficiency and effectiveness in China is low and water waste is common, thus exacerbating the gap between supply and demand. Water productivity is only one-fifth of the world average. The irrigation water-use efficiency is about 0.5. Grain output for each cubic meter of water is only 1.0 kg. Industrial water consumption output is five to ten times that of developed countries. The industrial water reuse rate is between 60 and 65%. The urban water supply network leakage is more than 15%. Additionally, the wastewater reuse rate is low.

1.6 Summary This chapter provides a general description, analysis, and summary of geography, hydrology, and water resource development in China, and provides a physical basis for the water resource management analyses in the subsequent chapters. The hydrological regime, water resource development, and water resource problems in China are introduced, and characteristics related to these issues are analyzed. The chapter starts with the geographical factors influencing water resource management, including topography, climate, and rivers. Then, the hydrological cycle and budget are analyzed based on a water resource assessment of the country. After an analysis of precipitation, evaporation, and runoff, the surface water resources, groundwater resources, and total water resources are presented. In terms of water resource development and usage, this chapter introduces water infrastructure development, water supply, and water usage over the last 40 years. At the end, key water issues, including water supply and demand conflicts, water pollution, deteriorating ecosystems, and low water-use efficiency, are analyzed. The monsoon and China’s variety of landscapes result in significant regional differences in terms of the hydrological cycle, water resources, and related issues. The regional distribution of water resources is uneven and not compatible with the distribution of other resources, such as population and land. The seasonal and interyear variations are great. In summary, the natural endowment of water resources in China is insufficient, with per capita and per unit of cultivated land totals lower than world averages; water resources have become a key constraint in regional social and economic development. More importantly, northern China, with its landscape impacted by human activities and climate change, has had a significant decrease in water resources, intensifying conflicts over water supply and demand.

24

1 Physical Settings and Water Challenges

References Dept. of Hydrology, MWR. (1992). Water resources assessment for China. China Water and Power Press, Beijing. General Institute of Water and Power Planning. (2014). Assessment for water resources and its development and use. Beijing: China Water and Power Publisher. Institute of Water and Power Planning, Ministry of Water and Power. (1989). Water resources use of China. Beijing: Water and Power Press. MWR. (1998–2017). Water resources bulletin of China, 1997–2016. MWR, National Bureau of Statistics. (2013). Bulletin of first national census for water. Beijing: China Water and Power Press. Nanjing Institute of Hydrology of Water Resources, China Institute of Water Resources and Hydropower Research. (1998). Middle and long-term water demand projection in China. Beijing: China Water and Power Press. Shen, D. (2004). The 2002 Water Law: its impacts on river basin management in China. Water Policy, 6, 345–364.

Chapter 2

Water Resources Management Framework

Abstract This chapter analyzes the water resources management framework in China, focusing on the system design and relationships. The key water resources management systems and their policy direction and focal points are described and analyzed. The relationships of these systems in water resources management are classified in terms of water resources development and use processes, management responsibilities, temporal and spatial aspects, technical review procedures and administrative management activities, and management instruments and levels. These systems form a complicated water resources management framework in China. The framework developed covers most aspects of water resources management, from long term to short term, from river basin to user, and from access restriction to internal incentives. Compared to those in other countries, China’s framework is more complicated, resulting in high requirements in its technical aspect and implementation. Keywords Water resource management framework · Water resource management system · System design · System relationship · Complexity

2.1 Water Resources Management Framework According to water legislation such as the Water Law and other relevant laws and regulations, China has established a water resources management framework to deal with water resources allocation, regulation, abstraction and use, as well as saving and protection. The management systems in the framework include various approaches, such as allocation, regulation, permit, fee/tax, use justification, zoning, quota, planning, and saving measures. When establishing these water resources management systems, the legislation entitles the management powers to water resources management agencies to implement these systems, such as RBOs and WADs at various levels (including province, prefecture, and county), and thus forms a complete implementation system (Fig. 2.1). The chapter is based on Shen, D. (2010). National water rights system development for China. Beijing: China Water and Power Publisher. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_2

25

26

2 Water Resources Management Framework

WAD of the State Council Water resources allocation

RBO Total amount control Water resources allocation and regulation

Water abstraction permit Water resources justification

Provincial WAD

Water function zoning, discharge Outlets into water body supervision

Water resources allocation and regulation

and management Planned water use

Prefectural WAD Water resources fee Water resources allocation and regulation

Quota management

County WAD

River basin and water body

Fig. 2.1 Water resources management framework of China. Elaborated by the author

The hierarchical water resources management institution and centralized political system of China make the implementation of water resources management systems highly complicated. Often, the implementation of a system involves water resources management agencies at all levels from river basin to nationwide. As a result, complex management relationships exist between these agencies and, in some cases, conflicts among agencies may arise, especially between the river basin management agency and regional water resources agencies. From a technical perspective, the requirements of a complex system are high. To achieve technical consistency, water resources management agencies are therefore required to better cooperate and coordinate.

2.2 Main Water Resources Management Systems 2.2.1 Medium- and Long-Term Water Supply and Demand Planning System Medium- and long-term water supply and demand planning is a water resources management system designed for long-term and macro-level water resources allocation. Article 44 of the 2002 Water Law stipulates that “the development and planning administrative department and WAD of the State Council are responsible for the macro-level allocation of water resources across the country. The national and inter-province medium- and long-term water supply and demand plan shall be formulated by the WAD of the State Council, together with relevant departments and be implemented after being examined and approved by the development and planning

2.2 Main Water Resources Management Systems

27

administrative department of the State Council. The local medium- and long-term water supply and demand plan shall be formulated by the WAD of local governments, together with relevant departments at the same level, according to the upper level medium- and long-term water supply and demand plan, and local circumstances; and be implemented after being examined and approved by the development and planning administrative department of the same level government.” The macro-level allocation of water resources refers to distributing the limited water resources in various forms between river basins and regions in the country, river basin, or region, by means of both structural and non-structural measures, and in accordance with the rules of a market economy and the natural regimes of water resources, while following the principles of efficiency, equality, reasonability, and sustainability. The macro-level allocation of water resources is achieved through the formulation and implementation of medium- and long-term water supply and demand plans crossing river basins, provinces, prefectures, and counties. Water resources availability provides the basis for formulating such plans. The medium- and long-term water supply and demand planning system is the overall arrangement to regulate total water supply and demand. In accordance with the water resources availability and the eco-environmental catching capacity, the plan analyzes the current circumstances and then forecasts the medium- and longterm future. Based on the water demand from social and economic activities and the supply from the water resources system and its development, the plan is required to balance the domestic, productive, and ecological water uses in accordance with the principles of overall consideration, comprehensive balance, and rational allocation. The formulation of the medium- and long-term water supply and demand plan has an impact on all aspects of the national economy and the eco-environment, and thus it is an important part of medium- and long-term national social and economic planning. The preparation of medium- and long-term water supply and demand plans follows five principles. The first is coordination between water supply and demand: the water supply and demand should be comprehensively forecasted and analyzed. The second is comprehensive balance: the programs and measures for reasonably restraining demand; increasing effective supply; and protecting the eco-environment should be comprehensively studied, coordinated, and balanced. The third is ecological protection: the domestic, productive, and eco-environmental water uses should be coordinated overall, and the various available water resources should be rationally allocated in a region to facilitate coordination among water resources development and use, river basin, or regional socio-economic development and the ecoenvironment. The fourth is water saving: water saving should be given prominence by fully promoting and using water-saving technologies, processes, equipment, and products; by building water-saving awareness among the public and developing a water-saving management system; and by strengthening water-saving measures in agriculture, industry, and society. The fifth is rational development: surface and groundwater resources should be rationally developed; the surface, groundwater, and transferred water should be allocated reasonably; the water supply should be increased, and incentives for water saving should be developed to alleviate water supply and demand conflicts.

28

2 Water Resources Management Framework

In 1982, the MWP organized the conduct of a national water supply and demand balance analysis. The subsequent analysis report was completed in 1985. In 2002, the MWR and the National Planning Commission jointly organized nationwide water resources comprehensive planning activities. This work was finished in 2010 and contributed to developing the national medium- and long-term water supply and demand plan. The medium- and long-term water supply and demand planning system is a planning and technical review system. Through the formulation of medium- and long-term plans, the macro and strategic water supply and demand framework will be defined, which will provide the basis for river basin water resources allocation planning.

2.2.2 Water Resources Allocation System The water resources allocation system is a system for distributing water resources at river basin and regional level. The system allocates the present or near-future available water resources in the river basin, comparing to medium- and long-term water supply and demand planning system. The water resources allocation system is implemented through the formulation and implementation of the water resources allocation plan. Article 45 of the 2002 Water Law stipulates that runoff regulation and water distribution should be performed according to the river basin plan and the medium- and long-term water supply and demand plan, regarding the river basin as the unit. According to factors such as the current water use, geography, climate, water resources, population, land, economic structure, level of economic development, water use efficiency, and management of the administrative regions in the river basin, the water resources allocation plan allocates various water resources to each administrative region (Huang 2003). The Yellow River was the first major river basin in China to develop and implement a water resources allocation plan. In following years, the allocation plans of the Tarim River, the Hei River, and the Shiyang River have been formulated and implemented, which has greatly alleviated the water use conflicts among domestic, productive, and eco-environmental sectors and restored the ecological system. Following the promulgation and implementation of the 2002 Water Law, the formulation of the water resources allocation plan is being conducted across China. Some major (inter-province) river basins have completed plans, such as the Taihu Lake, and plans for river basins within a province are also being undertaken, although some regions have encountered non-technical barriers. The water resources allocation system is a technical review of the water resources management system in China. Intertemporally, the water resources allocation plan bridges the gap between the medium- and long-term water supply and demand planning and the present water resources management practices. Spatially, the river basin water resources allocation plan provides the basis for the water abstraction permit

2.2 Main Water Resources Management Systems

29

system. The river basin water resources allocation plan provides support for water resources development and utilization at the regional level, and it establishes the total volume control and water abstraction volume for the region.

2.2.3 Water Abstraction Permit System The water abstraction permit system is widely adopted as a water resources management tool around the world. From an economic point of view, the permit is a management measure to limit access. In China’s legislative framework, the water abstraction permit is a manifestation of the process of application for approval and granting of water abstraction rights. Furthermore, the permit is an effective and important tool for the government to regulate water resources development, utilization, and protection. Development process. The water abstraction permit system was introduced in China in the 1988 Water Law. In 1993, the State Council promulgated the “Measures for the Implementation of the Water Abstraction Permit System.” Based on the 2002 Water Law, in 2006, the State Council issued the “Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection.” Therefore, as of 2019, the water abstraction permit system has been implemented in China for more than 20 years. Article 7 of the 2002 Water Law stipulates that the state should implement the system of permits and fees for water resources. However, the rural collective economic organizations and their members using water from pools and reservoirs belonging to these organizations are exempted from such regulations. This article establishes the status of the water abstraction permit system as the nation’s basic water resources management system. In addition, Article 48 of the 2002 Water Law stipulates that the units and individuals that directly abstract water resources from rivers, lakes, or aquifers should, in accordance with the provisions of the national water abstraction permit system and water resources fee system, apply for a water abstraction permit from the relevant WADs or RBO, pay a water resources fee, and obtain the requisite water abstraction right. However, small amounts of water abstraction for household and livestock use are exempted from these requirements. Therefore, the introduction of the water abstraction permit system in water resources management in China meets the requirements of both adapting to a market economy and strengthening government macro-regulation. The implementation of this system is conducive to effectively control the water demand and alleviate the severe water shortage in some regions; to promote the transformation of water use from an extensive mode to an intensive mode; and to implement the government macro-management measures. The Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection specifies the design of the permit system for China. The term “abstracting water” refers to directly withdrawing water from rivers, lakes, or aquifers using water abstraction engineering or facilities, which include watergates,

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dams, canals, man-made river channels, siphon pipes, pumps, wells, and hydropower stations. The WADs above county level are responsible for the organization, implementation, supervision, and management of the water permit system according to the classified management rights. Each RBO established by the WAD of the State Council in major state rivers and lakes is required, in accordance with the provisions of the Regulations and with the authorization of WAD of the State Council, to be responsible for the organization and implementation of the water abstraction permit system within its jurisdiction. Besides water use by rural collective economic organizations and small amounts of household and livestock drinking water, temporary emergency uses are also exempted from the permit system. These emergency uses include abstraction and drainage to ensure the construction and production safety of underground works such as mines, to eliminate danger to public safety or public interests and to support agricultural anti-drought measures and eco-environmental protection. Design characteristics of the water abstraction permit in China. The abstraction activity is set as an entry point to achieve water source management. From the perspective of water cycle and water resource development and utilization, the design of the water abstraction permit system in China takes abstraction activities at abstraction engineering and facilities as the management entry point. The management of water abstraction can realize the sustainable development and utilization of water resources. Moreover, it can achieve management goals by impacting on other water-related activities. The water abstraction permit system establishes the objects that need to be included in management and those that should be exempted. Three key factors are considered for exemption. The first is historical reasons, which refers to exemptions of water abstraction permits for pools and reservoirs belonging to rural collective economic organizations. According to the definition in Article 81 of the 1986 General Principles of Civil Law, state-owned natural resources, including forests, mountains, grassland, wastelands, tidal flats, surface water, and others, can be used by the collective; to respect history and to fully protect the interests of rural collective economic organizations and farmers to develop rural water infrastructure and water resources, the legislation stipulates that water resources in the pools of and reservoirs built and managed by rural collective economic organizations are to be used by the rural collective economic organizations. Second is management costs and possibilities, which refers to small amounts of water use for households and livestock. Due to the large number of rural households in China and their low domestic water consumption, it is too costly and impractical to apply a permit for the management of these withdrawals. Therefore, for reasons of management costs and implementation, it is not necessary to apply for a permit to make such water withdrawals. Third is emergency management, which refers to the exemption of water withdrawals for emergency purposes, such as ensuring the construction and production safety of underground works, eliminating dangers to public safety or public interests and implementing agricultural anti-drought and eco-environmental protection measures.

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Given the critical time requirements of emergency management, emergency water abstraction is exempted from permit management, but required to be reported to and approved by the management agency at a subsequent time. The permit system framework develops a classified management institution and authorizes RBOs and provincial, prefectural, and county WADs to implement the permit system in accordance with the provisions of laws and entitlements to authorities, which is consistent with the water resources management system specified in the 2002 Water Law. Due to hydrological randomness, water resources change year by year. Within the design of the water permit system, approval, certification, and supervision processes are developed. According to the law, the actual water withdrawal of an abstractor in a given year should be implemented in accordance with an annual water abstraction plan formulated based on water forecasts. Roles in water resources management. As the fundamental system in water resources management in China, the permit system plays a crucial role. The water abstraction permit system has become the basic system for water resources management through the management of water abstraction activities. Although the water cycle is integrated and interrelated, water resources management covers different aspects, such as source management and end-of-pipe control. The water abstraction permit system has been developed at the source of water resources development, use, and protection. Through the management of water sources, the management targets for water resources development, use, and protection can be realized. Therefore, the permit system has become the most fundamental and critical system for water resources management in China. The water abstraction permit system develops the linkage for the water rights system through the management of water abstractors. According to the water resources allocation framework, under the water abstraction permit system, the state, as both the owner and manager of water resources, authorizes WADs and RBOs to review and approve the units and individuals directly abstracting water from rivers, lakes, and aquifers on its behalf. In terms of public and private sector relationships, the system links public water resources management with individual water abstraction activity. In terms of property rights, the system connects water resources state ownership rights with private water abstraction rights by means of the permit and water resources fee systems and by granting water abstraction rights. In terms of the spatial aspect, the implementation of the water abstraction permit system conforms to the water resources allocation plan, which develops the linkage between regional rights and private rights. Consequently, the permit system is not only an administrative management system, but also a system for rights entitlement and clarification. The water abstraction permit system realizes water resources allocation through the total volume control system. Technically, according to the law, the approval and supervision of the water abstraction permit, which are reflected in the permitted volume and annual water abstraction plan, are based on the water resources allocation plan and the annual water resources regulation plan. This arrangement is in fact the linkage between the regional total volume and the individual abstraction. Thus, the

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implementation of the permit system realizes the river basin and regional total volume control targets, as well as conducting water resources allocation. The water abstraction permit system establishes the basis for the implementation of the water resources fee system, which is another fundamental water resources management system in China based on economic incentives intended to increase the efficient use of water resources. However, the collection of water resources fees requires the permit system to provide water use information, such as the permitted volume and actual water use volume. Therefore, the water abstraction permit system provides the basis for the water resources fee system Implementation consideration in provinces. China is a centralized country. The laws and regulations promulgated at the national level must be implemented and applied in various provinces, prefectures, and counties. However, in light of the diverse water resources and different water resources development, utilization, protection, and management requirements among provinces, while implementing the national water permit system, many provinces have introduced reforms based on specific local requirements, resulting in distinctive forms of implementation in each province. These local designs are mainly reflected in the management objects. Generally, the design of the management objects is based on the following categories: Abstraction volume. This is the most commonly adopted rule. Generally, the authority of the management agency for permit approval is designed according to the applied amount for the permit. The volume can be quantified in two ways: as the annual total water withdrawal and as the withdrawal rate, such as Xm3/s. In the specific provisions corresponding to the approval authority of the same level management agencies, such as prefectural WADs, the provinces in southern China normally entitle a larger volume than those in northern China, while surface water resources are entitled by a larger volume than groundwater. Abstraction source. Generally, surface and groundwater water resources are managed separately. This is the common principle applied to water sources management. The most common approach is to combine abstraction volume with source. Abstraction site. The sites are normally designated based on river sections or lake areas. The corresponding management agency is designated to manage specific river sections or lake areas according to their importance. For example, the MWR grants management rights to RBOs in accordance with the river sections of major rivers in China, and similar provisions have been made in the provinces. Water abstraction sites are also often combined with volume control measures. Purpose. This concept is applied when defining the appropriate management agency for industrial, domestic, and agricultural water use, and usually in combination with volume. The type of the project for abstraction. This is used to define the management agency according to the abstraction project. For instance, a project approved by the State Council or its investment administrative department is normally managed by

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the MWR or its RBO. Nuclear power plants, which sometimes use less freshwater, are managed by the central government because of their importance. Abstraction area. This definition includes two aspects: the abstraction area, such as the urban planning zone or groundwater overdraft zone, and the administrative or geographical region, such as prefectures in a province with significant water resources circumstances or mountains and plains in a province. Scale of the water project. This category consists of several aspects, such as the scale of the water project for abstraction, for example, reservoir storage, and the scale of the water abstraction project, for example, the installed capacity of the power station or pumping station. Abstraction unit. This category is applied to define the management agency according to nature of applicant for water abstraction. For example, the application of the central and provincial units for directly abstracting groundwater should be managed by the provincial WAD in Tianjin. This rule is not widely applied in most provinces. In practice, the more common method is the combination of these rules, such as site with volume, area with volume, source with volume, and so on. Thus, this approach forms the diverse local water abstraction permit applications, which follow the national design framework and combine it with specific local management requirements. However, this diversity is a challenge to water resources management under a centralized system in China, particularly in the formulation and implementation of a river basin water resources allocation plan. As for implementation, at the end of 2017, there were 349,187 effective permits, with a permitted volume of 9,227.6 billion m3 . Of these, permits for out-of-stream use comprised 314,626 units, with a permitted volume of 381.4 billion m3 . The percentages of the permits for out-of-stream surface water, groundwater, and other sources were 16.6, 83.2, and 0.2%, respectively, with 87.8, 12.1, and 0.1%, respectively, in terms of non-instream total permitted volume. As for the management agency, RBOs had 1,397 units, with a permitted volume of 3,668.8 billion m3 (Water Resources Management Centre, MWR 2018).

2.2.4 Water Resources Fee System As with the water permit system, the water resources fee system is one of the fundamental systems for water resources management in China. The water resources fee system is a design of internal incentive: it seeks to achieve the goal of water resources management through the internal (price) incentive mechanism. The water resources fee system is based on the dual identity of the state as both the owner and manager of water resources. It is a system to collect a water resources fee from the unit or individual directly abstracting water from rivers, lakes, and aquifers to realize ownership equality and ensure the sustainable utilization of water

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resources. Article 34 of the 1988 Water Law stipulates that a water resources fee should be levied on units that take water directly from aquifers in cities; fees for other water taken directly from aquifers, rivers, and lakes may be decided by the provincial governments. Articles 7 and 48 of the 2002 Water Law stipulate that the state should implement a water resources fee system. The 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection provides detailed provisions on the implementation of the water resources fee system in China. The 2006 Regulation clearly specifies the conditions for the collection, use, and management of water resources fees. The Regulation stipulates that the payment of water resources fees and the application for water abstraction permits should jointly become key elements of water resources acquisition, and it clarifies the formulation principles and management agency, as well as the collection scope and objects. The collection procedure, allocation, and uses of the fee are also elucidated in this document. According to Article 28 of the Regulation, the water resources fee collection standards should be formulated by provincial pricing administrative departments with the provincial financing department and WAD and then reported to the provincial government for approval. The standards for central and cross-province water projects with water abstraction permits approved by RBOs should be formulated by the pricing, financing, and water administrative departments of the State Council. The fee is collected by the water permit approval agency, with those permits approved by RBOs collected by the provincial WADs instead. The collection amount is decided by the collection standard at the abstraction site and the actual abstraction volume. Furthermore, the abstractor is required to withdraw water according to an approved annual water abstraction plan; if this plan or quota is exceeded, an overcharge will be applied to the exceeding volume. Before the 1988 Water Law, only Shanxi, Liaoning, and Tianjin Provinces in China, which were suffering water shortages, imposed water resources fees. The 1988 Water Law developed the water resources fee system, but left the implementation decisions to individual provinces. The 1997 Water Sector Industrialization Policy encouraged provinces to fully collect water resources fees, a measure which was incorporated into the 2002 Water Law. The 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection details the implementation of the fee system. In 2009, the Ministry of Finance, the National Development and Reform Commission, and the MWR jointly promulgated the Management Methods of Collection and Use of Water Resources Fees. At present, all 31 provinces in China have issued water resources fee collection methods. By 2008, all provinces had started collecting the fee, and a total of 7.3 billion RMB in water resources fees was collected nationwide in that year. Of that sum, 1.68 billion RMB was levied on industrial water abstraction, 1.31 billion RMB was collected from domestic water use, 263 million RMB was levied on hydropower generation, 237 million RMB was levied on water for power generation, and 10 million RMB was levied on agricultural water (Department of Water Resources, MWR & China Institute of Water Resources and Hydropower Research 2009).

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From the perspective of water resources management, the water resources fee system and the water abstraction permit system jointly constitute the basic system of water resources management for individual water users. Through the external restrictions imposed by the permit system and the internal incentives offered by the fee system, and under the rational system design and implementation, the water resources management goals could be effectively achieved.

2.2.5 Water Resources Justification System The water resources justification system is an important system established in recent years in China. Article 23 of the 2002 Water Law stipulates that the formulation of the social and economic plan and city overall plan and the distribution of major construction projects should be in accordance with the local water resources availability and flood control requirements, as well as involving a scientific justification process. In 2002, the MWR and NDPC jointly issued the Management Methods for Water Resources Justification of Construction Projects. Article 2 of the methods stipulates that for new reconstruction and expansion construction projects which directly withdraw water from rivers, lakes, or aquifers and are required to apply for a water abstraction permit, the owner of the construction project should conduct a water resources justification and then compile a water resources justification report for the project. The water resources justification report is required to conduct analysis on four technical issues related to water resources and construction projects. The first is the assessment of water abstraction sources, which normally reviews whether water resources are available for the project. The second is the assessment of water use rationality, which investigates the water use process of the project. The third is the assessment of the return flow, which analyzes the impact of the return flow of the project on environment, particularly on the water function zone. The fourth is the assessment of the third-party impacts. The examination authority of the management agency in the water resources justification system is also defined in the legislation. The Management Methods for Water Resources Justification of Construction Project stipulates the examination scope of the MWR and its RBOs, but leaves other aspects to be decided by the provincial WAD. Generally, the province defines the examination authority as the same that is designed for management of water abstraction permits. Since the implementation of the water resources justification system for construction projects on May 1, 2002, significant progress has been made. The water resources justification report procedure has significantly improved the assessment for the approval of water abstraction permits and promoted the optimal allocation and sustainable use of water resources, while also guaranteeing efficient water use in construction projects. Over time, the water resources justification procedure for construction projects has developed into a more standardized system.

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In water resources management, the water resources justification system for construction projects is the precondition of the water abstraction permit. The Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection stipulates that the water resources justification report for a construction project and its review opinions provide the examination and approval basis for a water abstraction permit application. This provision clarifies the relationship between the water resources justification system for construction projects and the water abstraction permit system. The justification system is a technical review, and the permit system is the administrative approval, where a decision is made not only based on technical issues, but also considers other factors (Department of Water Resources, MWR 2006). The practices in different provinces reflect this arrangement: the water resources justification for construction projects is becoming a technical review system for the water abstraction permit, and the water permit system has been reformed to a standard administrative approval system. Operating together, both systems form the technical and administrative approval system for water resources management. Another development direction of the justification system is the extension of the system to plan formulation, which reflects a trend from the micro- (the construction project) to the macro-level (the planning area). This shift meets current water resources management development needs in China, along with the requirements for total volume control. At present, the MWR is preparing technical guidelines for water resources justification plans. The pilots have been conducted at the local level, including urban total planning and key industrial zone projects.

2.2.6 Planned Water Use System The planned water use system is a system to manage real water resources use activities in China. The introduction of the planned water use system is a consequence of the stochastic aspect of water resources, namely, the year-to-year or season-to-season changes in precipitation and inflows. The water availability and use in a given year or season will be affected by these changes. Therefore, in water resources management, a management mechanism or system must be developed to address this issue. In China, the planned water use system was established to manage water resources in a specific year or season, adjusting to precipitation or runoff changes (Huang 2003). Thus, differently from other volume-based systems applied on an annual average basis, the planned water use system defines the actual water use in a year or season. The planned water use system is implemented through a series of water resources regulation, abstraction, and use plans. Article 49 of the 2002 Water Law stipulates that water should be utilized according to an approved water use plan. According to the water resources allocation framework, the planned water use plan system should consist of an annual water resources regulation plan at the river basin and regional level, an annual water abstraction plan at the water abstraction permits level, and an annual/seasonal water use plan at the user or sector level.

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The annual water resources regulation plan, which is the application of the system at the river basin and regional levels, is the measure to manage the actual water use activities. Detailed legislative provisions regarding this issue have been developed, including Article 46 of the 2002 Water Law, Article 39 of the 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection, Article 12 of the 2007 Interim Measures for Water Resources Allocation, and Article 40 of the 2008 Water Abstraction Permit Management Method. The annual water abstraction plan is the application of the planned water use system at the water abstraction level and is the measure that manages water abstraction activities. Article 40 of the Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection and Article 34 of Water Abstraction Management Methods detail the formulation and implementation of the plan. The annual/seasonal water use plan involves the application of the planned water use system in the public water supply system, including irrigation districts and the urban water supply system. This plan manages the actual water use activities of farmers and/or water users associations (WUAs) and those of the major users of the urban water supply system. Water use plan management, which is sourced from the urban water-saving works by Ministry of Construction in the 1980 s, is incorporated into the planned water use system. Water use plan management is similar to the annual water use plan at the user level, but only applied in urban areas. Water use plan management requires the formulation of a water use plan every year for management sectors or water users by the water resources management department. This system has been effectively implemented for urban water users above a certain volume for many years. Following the 1998 governmental restructuring in which the urban water-saving agency was handed over from the Ministry of Construction to the MWR, the agency’s work has been well preserved and implemented in some cities and regions, such as Beijing and Zhengzhou. In Beijing, the Beijing Water Saving Management Centre, in consideration of the municipal water supply and use plan, issues water use plans for over 30,000 users every year, including both large industrial enterprises and small businesses. Each water user plan is formulated according to the corresponding water use quota and the water consumption of the previous year. In Zhengzhou City, Henan Province, the Zhengzhou Water Supply and Water Saving Office implements water use plan management for users with a monthly consumption of over 100 m3 . Water use plan management is motivated by and serves to facilitate water saving. However, the question of how to combine such water use plan management with the planned water use system in technical and managerial aspects remains unresolved. In summary, the planned water use system is a system to manage the real water use of water abstractors, users, regions, and river basins. In practice, the implementation of this system will decide the implementation of other systems related to water use and abstraction.

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2.2.7 Water Function Zoning System The water function zoning system is the basic system for water resources protection in China. In accordance with the requirements of sustainable water resources development, socio-economic development, and river basin comprehensive development, the water functional zoning process delineates the dominant functions and functional priority of each water body, as well as determining the water resources protection target under which the functions of a water body would not be damaged. According to the relevant legislation, taking into account the environmental capacity, socio-economic development, and pollutant discharge control, the zones are grouped into a water function preliminary zone and secondary zone. The preliminary zone consists of a protection zone, a buffer zone, a development and use zone, and a reserve zone. The secondary zone is designated in the scope of the development and use zone in the preliminary zone; it is divided into a drinking water source zone, an industrial water use zone, an agricultural water use zone, a fishery water use zone, a recreational water use zone, a transitional zone, and a wastewater discharge control zone. Based on the water quality protection target and the natural purification capacity of the water function zone, the water pollution assimilation capacity of a water body in the zone can be defined. Subsequently, the controlled pollutant discharge assessment can be made concerning the assimilation capacity of and the present pollutant discharge to the water body. This understanding is the underlying logic of the design of the water function zone system in China, as well as for water resources protection. According to the 2002 Water Law, the drafting of the water function zone must regard the basin as a unit and should be developed on the basis of a river basin comprehensive plan, a water resources protection plan, and social and economic development requirements. The 2003 Management Methods of Water Function Zone stipulates that the approved water functional zone is the basis for the development, utilization, and protection of water resources. The WAD of the State Council is responsible for the unified supervision and administration of water function zones across China. The WADs of the local government at or above the county level and RBOs are required to supervise and administer these water function zones according to the relevant jurisdiction and management authority. The management methods stipulate that the management of water function zones should also follow the protection targets set by the zone. Within the protected zone, it is forbidden to conduct activities that are not conducive to protection functions. The reserve zone should be treated as a reserve for the future development and utilization of waters, and maintain the present circumstance in principle. The activities that may have a greater impact on the quality and quantity of water resources in the buffer zone must be approved by the management agency. The unit of the construction project, with the activities that may impact the water function zone, including water abstraction, construction in river course management scope, and so on, should analyze the

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construction and operation of the project in terms of its effects on the water quality and quantity of the zone, either in the water resources justification report or the water abstraction application documents submitted to the relevant WADs or RBOs. The water function zoning system is one of the basic systems of water resources protection in China. It is the planning and technical review system for water resources protection. By delineating the functions of different water areas, the objectives of water resources protection in the zone can be determined and the pollutant assimilative capacity can be identified, providing the basis for the management of the discharge outlet into waters. Since being established, the water function zoning system has achieved great progress in its activities. By 2006, 1,407 rivers and 253 lakes and reservoirs had been formulated in the zone. In 2011, the State Council approved the National Water Function Zone for Key Rivers and Lakes.

2.2.8 Total Pollutant Discharge Volume Control System The implementation of the total pollutant discharge volume control system is one of the important means to effectively manage the water function zone. Each water body has a self-purification capacity: when the pollutants present exceed its purification capacity, a water body becomes polluted. Under this theory, the assimilation capacity of the water body should be determined first to ensure its protection. Article 32 of the 2002 Water Law stipulates that the WADs at or above the county level or RBOs should, in accordance with the water quality requirements of the water function zone and the natural purification capacity of the water body, verify the pollutant catching capacity of the water body and put forward the opinions on limiting the total pollutant discharge volume of this body. Article 11 of the Management Methods of Water Function Zones stipulates that the verified pollutant catching capacity and the opinions on limiting the total pollutant discharge volume of the water body are the basis for WADs and RBOs to implement water resources protection supervision, as well as for EPADs to implement water pollution control. Therefore, the total pollutant discharge volume control system provides the basis for the management of discharge outlets into the water body by determining its pollutant catching capacity and being transformed into the allowable pollutant discharge volume of this water body. The system is a technical review system, connecting the water function zone backward and serving to the management system of discharge outlets into water body forward. The MWR has finished determining the pollutant catching capacity for water bodies and provided opinions on limiting the total pollutant discharge volume of these water bodies to the relevant EPADs.

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2.2.9 Management System of Discharge Outlet into Water Body The management system of discharge outlets into water body is a basic management measure for water resources protection and implementing water function zoning and total pollutant discharge volume control systems. Article 34 of the 2002 Water Law stipulates that it is forbidden to set up a wastewater discharge outlet in the drinking water source protection area. In rivers and lakes, the building, reconstruction, and expansion of discharge outlets must be agreed by the WADs or RBOs in the jurisdiction, while the EPAD is responsible for the approval of the environmental impact report on the construction project. The 2005 Supervision and Management Methods for the discharge outlets into water body (revised in 2016) specify that the setting of discharge outlets into a water body should conform to the requirements of the water function zone, the water resources protection plan, and the flood control plan. The WAD of the State Council is responsible for organizing and guiding the supervision and management of the discharge outlets into water body throughout the country. Local government WADs at or above the county level and RBOs are responsible for supervising and administering the establishment and use of discharge outlets into water bodies based on jurisdiction. In the 2018 restructuring of governmental organizations, the functions were transferred from the MWR to the MEE, including the line agencies of the local governments.

2.2.10 Total Water Volume Control System Article 47 of the 2002 Water Law stipulates that “the state exercises a system of total water volume control combining with quota management.” As the macro-control instrument in water resources management in China, and considered from a legislative point of view, the total water use volume refers to the available water resources from a river basin, province, prefecture, and county, as well as a sector, enterprise, and user. Technically, the formulation of the total water use volume of a region, sector, or user should be determined according to the water resources survey and assessment and based on an investigation of the availability of water resources and the water use of the country, river basin, province, prefecture, and county (Huang 2003). According to China’s water resources allocation framework (see Chap. 5), the total water use volume can be reflected in different ways. In the spatial aspect, it includes the river basin total water volume control, the regional total water volume control, the water abstraction permitted volume control, and the total water use control in the public system. In the temporal aspect, it consists of an annual average total water volume control and an annual/seasonal total water volume control. In terms

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of management objectives, the systems required could be envisioned as abstraction control, consumption control, and use control (Shen 2020). The river basin total water volume control indicator consists of annual average and annual/seasonal water resources development volumes. The annual average volume is defined in the river basin water resources allocation plan or water resources allocation agreement, and the annual/seasonal volume is defined in the river basin annual water resources regulation plan. The regional total water volume control indicator refers to the annual average and annual/seasonal water resources development and use volumes for a region. According to China’s administrative system, the regional volumes could be the targets at the provincial, prefecture, and county levels. The annual average regional indicator and the annual/seasonal indicator are included temporarily. Compared to the river basin indicators, all of the other indicators are identical, except for geographical differences. The average indicator is determined by the river basin water resources allocation plan, while the annual/seasonal indicator is formulated by the annual water resources regulation plan. The indicator at the permit level is the water abstraction indicator, which refers to the annual average and annual water abstraction volume under a permit. The annual average indicator is recorded in the water abstraction permit as the water abstraction volume. The annual indicator is defined as the allowed volume in a specific year and reflected in the annual water abstraction plan. The public water supply system includes the urban water supply system and the rural irrigation districts. The management agencies that hold the water abstraction permits supply the water they transfer to individual water users, rather than utilizing it themselves. Additionally, long- and short-term water volume controls apply in both systems for the individual water user in China. Various definitions for water volume in control, including abstraction, consumption, and use, are employed for different management purposes and regions in China. In theory, the abstraction volume control is only required to manage abstraction, with no demand on consumption and use; the use control only manages the use volume, with no demand on consumption. The consumption control is only required to limit the consumptive volume, with no requirement for abstraction and use. However, in practice, these definitions are closely linked in the hydrological cycle and water resources development process. The abstraction volume is applied both at the abstraction level and for river basins/regions with abundant water resources, such as those found in southern China. Abstraction is a legal definition in the permit system. In the river basins and regions with abundant water resources, consumption will not have a significant impact on the other users, thus the management focus is on the quality of the return flow rather than its quantity. The consumption volume is widely applied in northern China because of a shortage of water, including in the Yellow River Basin, the Hei River Basin, the Tarim River Basin, and the Shiyang River Basin. In these river basins, a portion of water used downstream comes from the return flow of the upstream users. If the upstream users consumed more water, the downstream users would have less water

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available for their use. The drying up of the Yellow River from the 1970 s to the 1990s and the disappearance of many tail lakes in inland river basins in northwest China have generated the demand to manage consumption rather than abstraction. The use volume is applied at the user level, including industrial enterprises and farmers. Such use occurs at the end of the supply and allocation system. To some extent, it is costly and unnecessary to manage in terms of abstraction or consumption. The annual average total control indicators generally refer to the planned indicators, regardless of the changes in water resources between years. These indicators are reflected in the river basin water resources allocation plan or the total amount of water abstraction permitted volume. For a water abstractor, the annual average control indicator is the amount of water specified on the water abstraction permit. The annual or seasonal control indicators are the volume in the annual plan or the real water use, formulated according to an annual water resources regulation plan, an annual water use plan, and an annual water abstraction plan. With the increasing conflict between water supply and demand, the total water volume control system is being subjected to increasing scrutiny in China. At present, the river basin water resources allocation plan is formulated at the central level and in the provinces, including the regional total water abstraction volume. With the implementation of the strictest water resources management strategy, control indicators have been developed, covering the country, province, prefecture, and county levels. The total water volume control system is a macro-water resources technical review system, and it provides the guidance for and is implemented through the planned water use system and the water abstraction permit system.

2.2.11 Quota Management System Quota management is a system combined with the total water volume control system in China. The water use quota is a water usage allocation per unit of product or service that is determined by the water budgeting test. This quota is the microcontrol index in water resources management and provides the basis to formulate macro-control indicators, such as total water use volume, water abstraction permit approval, and others. The water use allowance, such as in the permit application, could be determined by the sectoral water use quota and the quantity of the product or service. The quota management system includes the management and implementation of the water use quota. Quota management involves formulating, promulgating, and revising specific water use quotas. Quota implementation concerns how to implement the quotas in water resources management practices. Article 47 of the 2002 Water Law establishes the quota management system. Article 16 of Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection stipulates that the amount of water use verified in accordance with the sectoral water use quota is the primary basis for the approval of abstraction volume. Based on this article, the provincial WAD and quality supervision

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and inspection department are granted responsibility for guiding and organizing the formulation and implementation of sectoral water use quotas in specific jurisdictions. As of 2008, 27 provinces have formulated and issued water use quotas. The relevant departments of the State Council have issued and implemented quotas for some water-intensive industries and organized the preparation of agricultural irrigation quotas. Currently, a water use quota system that both reflects national water use efficiency and considers local water use and saving is in the process of being formed in China. At present, the quota management system has not only been improved, but is also widely applied in water resources management across the country, such as in the water resources allocation plan, the annual water resources regulation plan, the water abstraction permit approval and supervision process, and the annual water use plan. Quota management is a technical review and micro-management system for water resources management. Through joint implementation with the total control system, technically, water resources management has realized the combination of both microand macro-aspects in its system design.

2.2.12 Metric Charging System The metering and charging of water use is the most important means to support improved water resources management and a crucial measure to promote water saving. Only through measurement, can the use be accurately accounted for. The metric charging system levies the water user on the volume utilized, which can encourage water users to save water and expenditures. Therefore, the system is an internal incentive that achieves the objective of water resources management by setting reasonable resources and service prices to promote the sustainable utilization of water resources. Metering is the basic technical support for water resources management. Only by establishing a sound water resources monitoring and metering system can water resources development and utilization be effectively managed. In 2012, the MWR launched the national water resources monitoring capacity development. The stage 1 project to develop three monitoring systems for key water users and abstractors, key water function zones, and key cross-province sections has been completed. The stage 2 project is ongoing. Additionally, provinces have promoted water metering coverage, and the metering rate for industrial and urban abstraction has now reached 80% nationally.

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2.2.13 Overcharge for Plan/Quota-Exceeding Use The overcharge for plan/quota-exceeding use is a system to promote water saving and punish the wasting of water. The system consists of two aspects. First, increasing the block tariff for quota-exceeding water use in water service charges. Second, the overcharge for plan/quota-exceeding water abstraction in the water resources fee. The system of increasing the block tariff for quota-exceeding water use in water service charges means that the charges on water use within the plan will be implemented at a lower rate, while those exceeding the plan will be higher to promote water saving by users. For example, the block tariff for household water use in Beijing, which was first implemented in 2014, is 2.07 RMB/m3 for annual usage below 180 m3 for each household, 4.07 RMB/m3 for annual usage between 180–260 m3 and 6.07 RMB/m3 for annual usage above 260 m3 . The water resources fee is charged progressively over the plan/quota-exceeding abstraction. Article 28 of the Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection stipulates that the water abstraction unit or individual should take water according to the approved annual water abstraction plan; if this usage level exceeds the plan or quota, the plan/quota-exceeding abstraction should be charged progressively. For example, the 2012 Beijing Water Saving Management Methods specifies that in the public water supply system, one additional water fee should be charged for plan-exceeding usage under 20%, two additional fees for such usage between 20–40% and three additional fees for plan-exceeding usage above 40%; for the self-supplier, a fee five times the standard water resources fee should be charged for plan-exceeding usage under 20%, a fee ten times great for such usage between 20–40% and a fee fifteen times greater for plan-exceeding usage above 40%. Therefore, the overcharge for plan/quota-exceeding use is an internal incentive that uses economic means to encourage the user’s self-adaption to achieving water resources management goals.

2.2.14 Water-Saving System The water-saving system was introduced quite early in China. Article 8 of the 2002 Water Law stipulates that the state should strictly implement water saving and positively promote water-saving measures; encourage the application of new water-saving technologies and processes; develop water-saving industry, agriculture and services; and establish a water-saving society. Furthermore, governments should take measures to strengthen the management of water saving, establish a watersaving technology development and promotion system and cultivate and develop water-saving industry. This article also places users under an obligation to save water.

2.2 Main Water Resources Management Systems

45

Water saving involves a mixture of activities in China. In combination with technology promotion and raising public education and awareness, the activities constitute a comprehensive water-saving management system with other systems. However, the water-saving system is not as readily implementable and enforceable as others, such as the water permit and water resources fee systems. In the 1980s, China started to save water and establish corresponding agencies. In addition to conducting public awareness and education programs, promoting new technologies and products, and constructing water-saving projects, China has also implemented water-saving management from the perspective of water use plan management, as discussed in Sect. 2.2.6, and achieved significant results.

2.2.15 Groundwater Management System China has established a management system to promote the sustainable use of groundwater resources, besides the general systems applying to both surface and ground water resources. Article 36 of the 2002 Water Law stipulates that in groundwater over-exploitation areas, local governments should take measures to strictly control the exploitation of groundwater. In serious over-exploitation areas, with the approval of the provincial governments, restricted or prohibited exploitation zones may be established. Moreover, groundwater exploitation in coastal areas should be scientifically justified and measures should be taken to prevent land subsidence and seawater intrusion. In terms of responsibility, groundwater is more jurisdictionally managed than surface water. Local governments are responsible for controlling groundwater exploitation, while prohibited and restricted groundwater exploitation zones are delineated by the provincial government. Groundwater management in China has adopted the zoning system, which involves formulating and issuing the exploitation, restricted exploitation and prohibited exploitation zones, and developing the corresponding measures to manage them separately. In recent years, most provinces in China have delineated restricted and prohibited exploitation zones, which play a positive role in controlling the over-exploitation of groundwater and restoring groundwater resources. The groundwater management system in the country is in the exploratory stage. Although the 2002 Water Law has developed a general framework, the concrete implementation of these systems is not yet effective due to the common pool resources nature of groundwater, which is the most widespread reason for the excessive exploitation and utilization of groundwater in some areas of China, as well as in the other parts of the world. In summary, the zoning system in groundwater management is a technical review system. The zones and the differentiated management policies are developed for the sustainable utilization of groundwater resources.

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2.3 Relationships Among Water Resources Management Systems The previous section has discussed the key water resources management systems in China one by one and analyzed the internal design and implementation of each system. As the elements of the water cycle, as well as water resources development and utilization, are interconnected, these management systems are also interrelated and mutually influencing. The interrelationships of these systems form a complicated and systematic water resources management system that promotes effective water resources management from various aspects (Figs. 2.2 and 2.3). Therefore, taking into account the perspective of each system, this section will investigate the relationships among these systems.

2.3.1 Water Resources Development and Use Process The complete process of water resources development and use includes water abstraction, supply, use, and discharge. Of these aspects, water supply is a service and is therefore not managed by the resources systems. Water bodies, including water sources for abstraction and waters for wastewater discharge, and various water activities such as abstraction, use, and discharge are involved in this process. In China’s water resources management framework, most systems are designed to manage water resources. These systems include the medium- and long-term water supply and demand planning system, the water resources allocation system, the water resources justification system, the water function zone system, the planned water use system (annual water resources regulation plan), the total water volume control system, and the groundwater management system. Of these, the mediumand long-term water supply and demand planning system is concerned with future water resources development and use; the water resources allocation system manages water resources allocation in the present; the water resources justification system offers assessments of water sources, while the water quality management for water sources is dependent on the water function zone system. For groundwater resources, the groundwater management system will be applied. The management of water abstraction is jointly conducted by the water resources justification system, the water abstraction permit system, the water resources fee system, the overcharge system for plan/quota-exceeding use, and the planned water use system (annual water abstraction plan). As discussed above, the water resources justification system emphasizes technical reviews, while the water abstraction permit system belongs to the administrative management sphere. The collection of water resource fees and the overcharge system for plan/quota-exceeding use are economic incentives. The planned water use system (the annual water abstraction plan) implements the water abstraction permit system and manages water abstraction activities in a given year.

Infiltration

Water function zone

Total water volume control

Groundwater

Groundwater management

Surface water

Evaporation

Atmosphere

Discharge

Use

Delivery

Abstraction

Metric charging Overcharge for exceeding-plan/quota use

Water resources fee Overcharge for exceeding-plan/quota use

Loss

Management system for discharge outlet into water body

Total pollutant discharge volume control

Water abstraction permit Water resources justification

Fig. 2.2 Hydrological cycle, water use, and water resources management systems. Elaborated by the author

Runoff

Runoff

Precipitation

Evaporation

2.3 Relationships Among Water Resources … 47

Water user

Public water supply system

Water abstraction permit

(prefecture to county)

Regional water resources allocation plan

(province to prefecture)

Regional water resources allocation plan

River basin water resources allocation plan

Total water volume control Quota management

Annual/seasonal water usage

Annual/seasonal water use plan

Annual water abstraction plan

Annual regional water resources regulation plan

Annual regional water resources regulation plan

Annual river basin water resources regulation plan

Annual/seasonal water resources regulation

Fig. 2.3 Water resources allocation and water resources management systems Elaborated by the author

Metric charging

exceeding-plan/quota use

overcharge for

Water resources fee

Water abstraction permit

Water resources justification

Water resources allocation system

Medium and long-term water supply and demand planning system

water resources allocation

water use

Planned

48 2 Water Resources Management Framework

2.3 Relationships Among Water Resources …

49

The management of water use consists of the water resources justification system (water use rationality analysis), the quota management system, the metric charging system, the water-saving system, the planned water use system (annual water use plan), and the overcharge system for plan/quota-exceeding use. Of these, the planned water use system (annual water use plan) plays a central role supported by the others. The management of discharge focuses on pollutant discharge. Therefore, the total pollutant discharge volume control system has become a key technical support system; the management system for discharge outlets into water bodies handles the administrative aspects. The management of pollutant discharge into water body depends on the water resources justification system (discharge analysis), the water function zone system, and the total pollutant discharge volume control system. It is clear that all of these systems are concerned with technical reviews, whereas there is no administrative system to manage water bodies, which are consequently very poorly managed and fully dependent on the results of other systems (Table 2.1).

2.3.2 Management Responsibility In China, water resources activities are classified in terms of development, use, saving, protection, and allocation. The management functions and responsibilities related to these activities can clearly reflect the relationships among water resources management systems. Water resources development is determined by the medium- and long-term water supply and demand plan system, which establishes the water resources availability for various future years. If related to groundwater resources, the groundwater resources plan will be applied. Water use management consists of the systems for water resources justification, water abstraction permits, water resources fees, planned water use, metric charging, and overcharges for plan/quota-exceeding use. These systems manage water use behaviors through technical reviews and administrative management, employing both internal incentives and external restrictions. Water saving is implemented by the quota management system, the water-saving system, and the overcharge for plan/quota-exceeding use. Based on these measures, water saving is achieved through plans, quotas, and overcharges in China. Water resources protection focuses on protecting water sources and controlling pollutant discharge into waters. The associated management system is composed of the water resources justification system, the total pollutant discharge volume control system, the water function zone system, and the management system for discharge outlets into water bodies. In the long term, water resources are allocated by the water resources allocation system and the total water volume control system from a macro-aspect and by the water resources justification system from a micro-aspect. In the short term, water resources are regulated by the planned water use system (Table 2.2).

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Table 2.1 Relationship among water resources management systems: water resources development and use process Process

Management system

Water source

Medium and long-term water supply and demand planning system Water resources allocation plan system Water resources justification system Water function zone system Planned water use system (annul water resources regulation plan) Total water volume control system Groundwater management system

Abstraction

Water resources justification system Water abstraction permit system Water resources fee system Planned water use system (annual water abstraction plan)

Use

Water resources justification system Quota management system Metric charging system Water-saving system Planned water use system (annual water use plan) Overcharge for exceeding-plan/quota use

Discharge

Total pollutant discharge volume control system The management system of discharge outlets into water body

Discharge (receiving) water body Water resources justification system Water function zone system Total pollutant discharge volume control system Water source

Medium and long-term water supply and demand planning system Water resources allocation plan system Water resources justification system Water function zone system Planned water use system (annul water resources regulation plan) Total water volume control system Groundwater management system

Abstraction

Water resources justification system Water abstraction permit system Water resources fee system Planned water use system (annual water abstraction plan)

Use

Water resources justification system Quota management system Metric charging system Water-saving system Planned water use system (annual water use plan) Overcharge for exceeding-plan/quota use (continued)

2.3 Relationships Among Water Resources …

51

Table 2.1 (continued) Process

Management system

Discharge

Total pollutant discharge volume control system The management system of discharge outlets into water body

Discharge (receiving) water body Water resources justification system Water function zone system Total pollutant discharge volume control system Elaborated by the author

Table 2.2 Relationship among water resources management systems: management responsibility Responsibility

Management system

Development

Medium- and long-term water supply and demand planning system Groundwater management system

Use

Water resources justification system Water abstraction permit system Water resources fee system Planned water use system Metric charging system Overcharge for exceeding-plan/quota use

Saving

Quota management system Water-saving system Overcharge for exceeding-plan/quota use

Protection

Water resources justification system Total pollutant discharge volume control system Water function zone system The management system of discharge outlet into water body

Allocation

Water resources allocation system Total water volume control system Water resources justification Planned water use system

Elaborated by the author

2.3.3 Timing Timing in water resources management refers to the temporal aspect of the management system, which includes the medium and long term (20 years in the future), the near term (10 years in the future), and the present or current year. In the water resources management framework of China, the systems related to the medium- and long-term issues include the medium- and long-term water supply and demand plan. Near-term water issues are managed by the systems for water resources allocation, water resources justification, water function zoning, groundwater management, quota management, total pollutant discharge volume control, discharge outlets into water bodies, water abstraction permits, and water resources

52 Table 2.3 Relationship among water resources management systems: timing

2 Water Resources Management Framework Timing

Management system

Present

Quota management system Metric charging system Water-saving system Planned water use system Overcharge for exceeding-plan/quota use

Near term

Water resources allocation system Water resources justification system Water function zone system Groundwater management system Quota management system Total pollutant discharge volume control system The management system for discharge outlet into water body Water abstraction permit system Water resources fee system

Medium and long term Medium- and long-term water supply and demand plan Elaborated by the author

fees. Present-day issues are managed by the systems for quota management, metric charging, water saving, planned water use, and overcharges for plan/quota-exceeding use (Table 2.3). Furthermore, in the temporal aspect, due to the hydrological randomness of water resources, water resources management should also concern the annual average and annual/seasonal issues. The systems for the annual average include the medium- and long-term water supply and demand plan system, the water resources allocation system, the water function zone system, the groundwater management system, the total water volume control system, the quota management system, the total pollutant discharge volume control system, the management system for discharge outlets into water bodies, the water abstraction permit system, and the water resources fee system. The system for annual/seasonal issues comprises the metric charging system, the water-saving system, the planned water use system, the overcharge for plan/quotaexceeding use, the total water volume control system, and the quota management system (Table 2.4).

2.3.4 Space The spatial aspect of water resource management concerns managed space, including the area and point levels and their macro- and micro-aspects. The management system

2.3 Relationships Among Water Resources … Table 2.4 Relationship among water resources management systems: annual average and annual/seasonal

53

Timing

Management system

Annual average

Medium- and long-term water supply and demand plan system Water resources allocation system Water function zone system Groundwater management system Total water volume control system Quota management system Total pollutant discharge volume control system Management system for discharge outlet into water body Water abstraction permit system, water resources fee system

Annual/seasonal Metric charging system Water-saving system Planned water use system Overcharge for exceeding-plan/quota use Total water volume control system Quota management system Elaborated by the author

for the point activities includes the water resources justification system, the quota management system, the management system for discharge outlets into water bodies, the water abstraction permit system, the water resources fee system, the metric charging system, the water-saving system, the planned water use system, and the overcharge for plan/quota-exceeding use. The management systems for the activities in an area involve the medium- and long-term water supply and demand planning system, the water resources allocation system, the water function zone system, the groundwater management system, the total water volume control system, and the total pollutant discharge volume control system. In fact, the macro (area)-management consists of the total control of a region or river basin. The micro (point)-management is the management of every individual water-related behavior within the area. Therefore, water resources management should integrate both micro- and macro-issues. With the changes in water issues, China is gradually transitioning its focus from micro-level issues to macro-level problems (Table 2.5).

2.3.5 Technical Review and Administrative Management The technical review and administrative management are identified from the traits of the system. Generally, the technical review system provides services and supports for the administrative management system, which directly intervenes in water resources

54 Table 2.5 Relationship among water resources management systems: space

2 Water Resources Management Framework Classification Management system Point (micro) Water resources justification system Quota management system Management system for discharge outlet into water body Water abstraction permit system Water resources fee system Metric charging system Water-saving system Planned water use system Overcharge for exceeding-plan/quota use Area (macro) Medium- and long-term water supply and demand plan system Water resources allocation system Water function zone system Groundwater management system Total water volume control system Total pollutant discharge volume control system Elaborated by the author

development and use practices. The administrative management system focuses on the detailed administration of water-related behaviors and activities. The systems for technical reviews in water resources management in China include those for medium- and long-term water supply and demand planning, water resources allocation, water resources justification, water function zoning, groundwater management, total water volume control, quota management, and total pollutant discharge volume control. The systems for administrative management consist of those for metric charging, water saving, planned water use, overcharges for plan/quota-exceeding use, managing discharge outlets into water bodies, water abstraction permits, and water resources fees (Table 2.6).

2.3.6 Management Instruments Generally, two types of the management instruments are applied in public management: access restriction and internal incentives. Access restriction is normally designed in the form of total volume or use control. The water resources management agency will limit the amount of water used in a river basin, region, or by users through compulsory quantitative control. Internal incentives seek to persuade water users to change their behavior by themselves through encouragement or punishment. In this way, the desired management effects or goals are achieved through the compulsory management of access restriction and the water user’s adaptation to internal incentives.

2.3 Relationships Among Water Resources …

55

Table 2.6 Relationship among water resources management systems: technical review and administrative management Classification

Management system

Technical review

Medium- and long-term water supply and demand planning system Water resources allocation system Water resources justification system Water function zone system Groundwater management system Total water volume control system Quota management system Total pollutant discharge volume control system

Administrative management

Metric charging system Water-saving system Planned water use system Overcharge for exceeding-plan/quota use Management system for discharge outlet into water body Water abstraction permit Water resources fee system

Elaborated by the author

Access restriction includes the systems of medium- and long-term water supply and demand planning, water resources allocation, water resources justification, water function zoning, groundwater management, total water volume control, total pollutant discharge volume control, planned water use, managing discharge outlets into water bodies, water abstraction permits, and quota management. The systems of metric charging, water saving, overcharges for plan/quota-exceeding use, and water resources fees function as internal incentives (Table 2.7).

2.3.7 Management Level If the water abstraction permit is regarded as the dividing point, water resources management activities can be divided into three levels: river basin and regional level (above water abstraction permit), water abstraction permit level, and water user level (below water abstraction level). According to this grouping principle, the systems at the river basin and regional level are those of medium- and long-term water supply and demand planning, water resources allocation, water function zoning, groundwater management, total water volume control, total pollutant discharge volume control, and planned water use (annual water resources regulation plan). The systems at the permit level include those for water resources justification, planned water use (annual water abstraction plan), water abstraction permits, quota management, metric charging, water saving, overcharges for plan/quota-exceeding use, and water resources fees.

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Table 2.7 Relationship among water resources management systems: access restriction and internal incentive Type

Management system

Access restriction

Medium- and long-term water supply and demand planning system Water resources allocation system Water resources justification system Water function zone system Groundwater management system Total water volume control system Total pollutant discharge volume control system Planned water use system Management system for discharge outlet into water body Water abstraction permit system Quota management system

Internal incentive

Metric charging system Water-saving system Overcharge for exceeding-plan/quota use Water resources fee system

Elaborated by the author

The systems at the user level are those for planned water use (annual water use plan), metric charging, water saving, overcharges for plan/quota-exceeding use, managing discharge outlets into water bodies, water abstraction permits, and quota management (Table 2.8). Therefore, based on the present design of water resources management systems in China, the water abstraction permit system is the key element among these systems, as it links upward with the regional and river basin systems and downward with water user management. Furthermore, the permit system provides the basis for the economic incentive-based systems.

2.4 Summary This chapter analyzes the water resources management framework in China, focusing on the system design and relationships. The key water resources management systems and their policy direction and focal points are described and analyzed. The relationships among these systems are considered from various perspectives. The implementation of these systems also is briefly reviewed. The chapter first analyzes the complexity of the water resources management system in China that is caused by its administrative system. Then, the key systems are explained and assessed individually. Next, the relationships of these systems in water resources management are classified in terms of water resources development and use processes, management responsibilities, temporal and spatial aspects,

2.4 Summary

57

Table 2.8 Relationship among water resources management systems: level Level

Management system

River basin and region

Medium- and long-term water supply and demand planning system Water resources allocation system Water function zone system Groundwater management system Total water volume control system Total pollutant discharge volume control system Planned water use system (annual water resources regulation plan)

Water abstraction

Water resources justification system Planned water use system (annual water abstraction plan) Water abstraction permit system Quota management system Metric charging system Water-saving system Overcharge for exceeding-plan/quota use Water resources fee system

Water user

Planned water use system (annual water use plan) Metric charging system Water-saving system Overcharge for exceeding-plan/quota use Management system for discharge outlet into water body Water abstraction permit system Quota management system

Elaborated by the author

technical review procedures and administrative management activities, management instruments and levels. The discussed systems form a complicated water resources management framework in China. The framework developed covers most aspects of water resources management, from long term to short term, from river basin to user, from access restriction to internal incentives. Compared to those in other countries, such as the US, Australia, and the UK, China’s framework is more complicated, resulting in high requirements in its technical aspect and implementation. These issues will be discussed in future papers.

References Department of Water Resources, MWR. (2006). Practice guidance for water abstraction permit and water resources fee collection. Beijing: China Water and Power Publisher. Department of Water Resources, MWR. (2009). China Institute of Water Resources and Hydropower Research. Water resources management yearbook of China. Huang, J. (2003). Explanation of Water Law of People’s Republic of China. Beijing: Legal Press.

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Shen, D. (2010). National water rights system development for China. Beijing: China Water and Power Publisher. Shen, D. (2020). Water use control system in China. International Journal of Water Resources Development, 36(4), 590–609. Water Resources Management Center, MWR. (2018). Annual report of water resources management.

Chapter 3

Water Resources Management Institutions

Abstract This chapter analyzes water resources management organizations in ancient history, development after 1949, and at present in China. The structures of water institutions in ancient China were very complicated. In the 70 years from 1949 to 2019, as the country developed from an agricultural economy to an industrialized one, the role of the water sector and its organizations experienced significant changes. The focus of the water sector shifted from water resources project construction to water resources management and to water resources saving and protection. The sector’s purposes were transformed from agriculture to industry, domestic sector, and ecology/environment. In almost 70 years, the MWR’s functions have undergone many changes. It developed from an agency for agricultural development in the 1950s to a combination of water infrastructure construction and hydropower development in the 1960s and 1970s. Its key responsibilities concerned water infrastructure construction and water resources management in the 1980s and 1990s, then water resources management in 2000s, but reverted to the management of water resources projects, water resources and waters after 2018. Keywords Water resource management institution · Ancient China · Water infrastructure construction · Water resources management · Water environmental protection

3.1 Water Management Institutions Before 19491 China has a long history of water resources development that extends over 3,000 years. Water resources management has been emphasized in all Chinese dynasties because it was regarded as the foundation of agriculture. In historical period, water resources management can be generally grouped into an administrative management system and an engineering implementation system. The activities of water administration normally include river harnessing, tide control, irrigation development, navigation, fishery and aquatic plants, as well as water transportation facilities (such as dams, bridges, and ferry crossings). 1 The section is based on Yao (1987) Profile of water resources development history of China. Water

and Power Publisher, Beijing. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_3

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The changes in water institutions throughout China’s history are highly complicated. At the central level, the water administrative management function and agency were normally set up within the engineering department and water department, while water engineering construction was under control of the Water Authority (Dushuijian). At the same time, there were local or residential water official systems responsible to the local governors, such as the Dushuilingceng (a water official in the central government) in the Han Dynasty (202 BC–220 AD), the Shuilitongpan (a water official under the prefectural governor), and the Shuilitongzhi (a vice prefectural governor in charge of water) in the Min (1368 AD–1644 AD) and Qing (1636 AD–1912 AD) Dynasties. Additionally, there were water officials delegated from the central to the local government, such as the river governor during the Min and Qing Dynasties, and missions delegated from the central to the local water departments, such as the Waidushuijianceng (delegated water official) in the Song Dynasty (960 AD–1279 AD). There were also arrangements under which non-water officials were responsible for water affairs, such as the Daoyuan (a local official between provincial governor and prefectural governor) in the Qing Dynasty and the local governor responsible for water affairs. The Sikong was the most senior official in the central government in charge of water and land engineering in ancient China. In the West Zhou Dynasty (1046 BC– 771 BC), water resources development, including flood control, drainage, storage, and irrigation, was the key responsibility of the Sikong. During the Han Dynasty, the Sikong was not a special water official but in charge of water and land engineering. In the Sui Dynasty (581 AD–618 AD), the Shangshu (minister) of the engineering ministry was responsible for these areas. During this era, the Dushuijian, distinguished from the engineering department, was established to oversee the implementation and maintenance of water infrastructure. In the Min and Qing Dynasties, the Dushuijian was disbanded and its responsibilities were transferred to the river basin organizations or the provinces, while the engineering department at the central level was in charge of administration. The water department under the Shangshu was responsible for water affairs. In the Caowei period (220 AD–266 AD), a Shangshulang (an official supporting the emperor in handling administrative affairs) was established in charge of water administration. The water department was established within the engineering ministry in the Sui, Tang (618 AD–907 AD), and Song Dynasties. In the Yuan Dynasty (1271 AD–1368 AD), the Dasinong (great official in charge of agriculture) was responsible for irrigation development, while the Dushuijian managed river dykes. The water department was set up in the Min and Qing Dynasties under the engineering ministry. Between 1912 and 1949, a water resources bureau was established under the agricultural and economic ministry, and later under the MWR. The Dushuijian was the special agency in the central government responsible for the planning, construction, and management of water infrastructure, serving parallel functions to the engineering department. In the Qin (221 BC–207 BC) and Han Dynasties, the Dushuizhang and Dushuiceng were established to manage lakes, rivers, and springs. These agencies were under the stewardship of the Taichang (an

3.1 Water Management Institutions Before 1949

61

official responsible for royal temple etiquette), the Dasinong (an official responsible for national finance and economy in the Qin and Han Dynasties), the Shaofu (an official responsible for managing revenue from land and waters, and a private agency of emperor, during the Qin and Han Dynasties), and the Shuihengduwei (an official responsible for the royal garden of emperor, and royal revenue, minting, and managing water, in the Han Dynasty). Under Emperor Chen (51 BC–7 BC) of the Han Dynasty, the Dushuishi was set up for these water officials. In the later Han Dynasty, these water officials were transferred to the local governments. During the Jin Dynasty (265 AD–420 AD), the Dushuidai was again established in the central government, under the leadership of the Dushuishizhe. In the Sui and Tang Dynasties and throughout the Jing (1115 AD–1234 AD) and Yuan Dynasties, the leader’s title of Dushuishizhe was changed to Dushuijian. The delegated agencies from the central government to the locals and rivers were called the Waijian (outsupervisor) or Waidushuiceng in the Song Dynasty, the Fenzhijian (branch of management agency) in the Jin Dynasty, and the Xindushuijian (residential Dushuijian) in the Yuan Dynasty. Both the central and delegated agencies had specific officials and technicians. In the Min and Qing Dynasties, irrigation development was delegated to the local level and no agency was established in the central government. However, special agencies, such as a river governor with the official level higher than a provincial governor, were set up for the major rivers, such as the Yellow River, Grand Canal, and others.

3.2 MWR Between Oct. 1949–Mar. 1958: Water Resources Development and Agricultural Development2 Before the founding of the PRC, the MWR of the government was in charge of flood control, irrigation development, hydropower, and ports. This organization had investigation and survey teams, and it included subordinate regional and river basin agencies, such as engineering bureaus in the Yangtze River and Huai River Basins, as well as in North China and Northeast China. In the 70 years since the foundation of the PRC, compared to the period before 1949, the water resources management institution has experienced significant changes, impacted by rapid social and economic development and changing water issues. The functions of water resources management agencies and the policy focuses during specific historical periods are illuminating examples that reflect these changes. Prior to 1949, the key functions of the water sector were irrigation development, navigation, and flood control. Since 1949, however, the sector has been extended from traditional irrigation development, flood control, and navigation to

2 Office

of MWR (2003) Organization history of water (hydropower) sector (1949–2000). China Water and Power Publisher: Beijing.

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cover hydropower development, urban and industrial water supply, and even ecological water supply after 2000, as well as water resources protection and pollution control, among others. Following the founding of the PRC, the central government established the MWR, the first national administrative agency with integrated responsibilities for flood control, irrigation, drainage, navigation, and hydropower development. Under social and economic development, both the functions and the name of the MWR have undergone several reforms through the merger and separation of the different agency departments. According to the name changes of the water agency in China since 1949, its institutional development could be divided into the following stages: the MWR between October 1949 and March 1958, the MWP between March 1958 and March 1988, and the MWR after March 1988. In October 1949, the MWR at the central government level was established, as the highest water administration department in the country, to guide and supervise MWR branches in major regions (an administrative level under central government and above provincial government, disbanded in 1954) and provincial water departments. According to the MWR’s 1955 mission statement, the agency’s functions were as follows: • Developing water resources construction policies and tasks according to the national development strategy. • Formulating the national water resources construction long-term plan and comprehensive annual plan. • Checking the annual plan and formulating annual increasing and saving indicators for water resources construction. • Formulating the annual financial plan and budgets for water resources development and managing financial transfers and accounting. • Leading national water resources survey and design works. • Reviewing river basin plans for the Yangtze River and Yellow River and leading the river basin plan for the Huai River. • Reviewing design documents for infrastructure development above the quota. • Organizing and checking the completion of the water resources construction plan. • Organizing and promoting national flood control and drought resistance to alleviate water-related disasters. • Handling and promoting maintenance for river water resources projects. • Leading hydrological surveys and data compilation. • Being responsible for the collection and forecasting of major hydrological information. • Formulating policy for small water resources projects and providing technical support and guidance for irrigation engineering. • Developing large-scale irrigation projects, promoting and leading small irrigation projects, and improving irrigation methods to enlarge the irrigation area. • Organizing and leading water resources scientific experiments and research, and organizing attempts to solve technological problems related to key water resources.

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• Leading medium-level technical schools to foster the development of technicians. During this period, the Bureau of Agricultural Water Resources Engineering under the Ministry of Agriculture was handed over to the MWR in May 1952. In 1954, the major regions and their respective MWRs were disbanded. In summary, soon after the founding of the PRC, as an agricultural country with low economic development still recovering from a recent war, the principal role of the water sector was irrigation development. Additionally, this period was characterized by the political and administrative reforms of the state, which had further impacts on the water resources management institution.

3.3 MWP Between Mar. 1958–Mar. 1988: Water Resources Development and Power Development3 In February 1958, the fifth session of the first NPC decided to merge the MWR and the Ministry of Power as the MWP. In 1966, when the Cultural Revolution began, the MWP was militarily controlled and the related departments in the ministry were disbanded. At the end of 1975, the MWP was restored.

3.3.1 MWP During February 1958–July 1967 The new MWP was an industrial department with the key missions of guaranteeing the national power supply, achieving long-term hydropower development and comprehensively developing rivers. Its detailed tasks included production management of the power sector, hydropower station and key water project construction, and thermal power plants and transmission and transformation engineering construction. In addition, to strengthen agricultural water resources development, benefit agriculture, and facilitate the MWP’s focus on power construction, the Bureau of Agricultural Water Resources Engineering was transferred to the Ministry of Agriculture, but returned to the MWP in June 1965. The arrangements for water resources management between the MWP and the Ministry of Agriculture were as follows: • The Ministry of Agriculture was responsible for long-term planning and annual planning for agricultural irrigation engineering and rural small-scale hydropower development, in coordination with the MWP. • Key river basin planning and large-scale project survey and design were conducted by the MWP, coordinated with the Ministry of Agriculture where related to irrigation. Medium- and small-scale river basin planning and project survey and design were conducted by local agencies with technical guidance from the MWP. 3 Office

of MWR (2003) Organization history of water (hydropower) sector (1949–2000). China Water and Power Publisher: Beijing.

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• The MWP was responsible for water resources allocation and the management of key water projects, while the Ministry of Agriculture was tasked with the management of irrigation and canals. • The central government was responsible for flood control, with daily operations handled by the MWP. • The cross-province water conflicts related to urban and industrial area were dealt with by MWP, while the Ministry of Agriculture handled conflicts related to agriculture. • The Ministry of Agriculture was responsible for water and soil conservation. After the MWP was established, provincial water departments operated under the dual leadership of the MWP and the Ministry of Agriculture. During this period, the MWP was regarded as an industrial rather than an agricultural department. Therefore, the key function of the agency was the construction of infrastructure to provide water and power for the country. The line between the MWP and the Ministry of Agriculture also reflected these characteristics: agricultural projects were considered as small scale and less important compared to power generation and supply. More importantly, the sectoral or departmental management roles of the water sector and its subsectors were clearly defined. This characteristic would endure until after the 2000s, although it was constantly criticized.

3.3.2 MWP During July 1967–January 1975 The 1966–1976 Cultural Revolution was a chaotic period for China. In July 1967, the previous organizations were revoked, and the MWP set up the military control commission and its internal groups, such as the secretariat group, production group, hydropower group and water resources group, comprehensive group, and so forth. These groups were changed over time.

3.3.3 MWP During January 1975–February 1979 In January 1975, military control ended and the internal agencies in the MWR were restored to their original functions. In October 1977, the State Council set up a national agricultural infrastructure construction office in the MWP, followed by a nuclear power bureau in November 1977. The establishment of these two agencies indicated that the country needed to emphasize large-scale agricultural project development and nuclear power development.

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3.3.4 MWR Between February 1979 and March 1982 In February 1979, the MWP was revoked and the MWR and the Ministry of Power Industry were set up. This arrangement was temporary, however. Subsequently, the MWR and the MWP were merged again for the last time.

3.3.5 MWP During March 1982–March 1988 In March 1982, the twenty-second session of the fifth NPC Standing Committee decided to merge the MWR and the Ministry of Power Industry into an agency responsible for the management of national production and construction works in water resources and power. This arrangement was the final merger with the MWP. After 1988, no further mergers between the MWR and the MWP occurred. During this period, the key functions of the MWP included the following: • Researching, formulating, and supervising the implementation of strategy, policy, legislation, and methods related to water resources and power. • Formulating and implementing long-term planning and annual planning for water resources and power. • Organizing planning for major rivers and transboundary rivers and engineering construction for key projects. • Overseeing operation and management of water infrastructure affiliated to the MWP and supervising national water infrastructure management. • Handling national construction and management of agricultural and pastoral water resources engineering, and small hydropower development. • Overseeing national hydrological works and water resources investigation and assessment. • Overseeing power construction and power supply management for urban and rural areas. • Handling power construction management. • Handling national water resources comprehensive development, use, protection and allocation, managing water and soil conservation, and providing comments on water tariffs. • Under the leadership of national flood-control headquarters; in charge of daily flood-control and drought-resistance operations. After the implementation of the reform and opening policy in 1978, the water sector was facing increasing demands on water and energy supply due to rapid social and economic development. Over the same period, large-scale water project construction began to slow down. Additionally, under market-oriented reforms in the power sector, no ministry related to the power industry would be established in the future.

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3.4 MWR During Mar. 1988–Mar. 2018: From Construction to Water Resources Management In March 1988, the first session of the seventh NPC decided to revoke the MWP and set up the MWR. Since then, the MWR has retained its organizational status, although its functions have changed over time due to six governmental restructurings.

3.4.1 MWR During March 1988–March 1993 In March 1988, the MWR was the water administrative department of the State Council, responsible for national water sector management. The agency’s key tasks included implementing Water Law of PRC; strengthening macro-regulation and control in policy, legislation, planning, coordination, and supervision; promoting water resources comprehensive development, use, and protection; and strengthening sectoral management of water infrastructure and activities. According to the State Council’s mission statement, the MWR’s functions consisted of the following: • Implementing the Water Law and organizing the formulation of water management administrative decrees. • Overseeing national integrated water resources management and protection, promoting water resources comprehensive development and use, organizing the implementation of the water abstraction permit system, coordinating water conflicts between sectors and provinces, and managing national water-saving works. • Organizing the formulation of water resources long-term and annual planning, formulating national and inter-province long-term water supply and demand planning with relevant departments, formulating inter-province water resources allocation planning and water projects, and organizing the construction of key projects. • Overseeing comprehensive harnessing and development of major rivers, formulating river basin comprehensive planning for key rivers and transboundary rivers with relevant departments of the State Council, and supervising implementation of plans after approval. • Managing hydropower development with key functions of flood control, irrigation, and water supply; handling rural hydropower development. • Comprehensively developing rural and urban water resources, managing rural and pastoral water resources development, along with county and township water supply. • Managing water bodies, bank lines, and water infrastructure of rivers, lakes, reservoirs, coastal dykes and flood storage and detention zones with relevant departments. • Managing national flood-control and drought-resistance works, overseeing daily operations of national flood-control and drought-resistance headquarters.

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• Managing national water and soil conservation works. • Organizing relevant agencies to conduct water resources investigation and assessment, conducting sectoral management on hydrological works. • Conducting sectoral management of water infrastructure construction and development, reservoir resettlement, and reservoir fishery. With the issuance of the first national Water Law in 1988, China’s first modern water legislation, the key functions of the MWR were fully implemented by law. In the meantime, the functions and design of subsectors in water sector have been formalized by following the definitions in the Water Law. This modern water resources management framework includes water resources, river and dyke planning, management and protection, water and soil conservation, flood control and drought resistance, in addition to the traditional water activities, such as hydrological works or agricultural and irrigation development. The framework has been consistently applied since 1988. Over the same period, the MWR started to pay attention to water resources management, although it retained its traditional focus on engineering aspects. This time is the beginning of modern water resources management in China. The causes leading to these changes included increasing water shortages in urban areas and industrial sectors, the international movement to emphasize water resources and their management in the 1980s, and other related developments.

3.4.2 MWR During March 1993–March 1998 According to the first session of the eighth NPC, the MWR was required to transfer functions, improve efficiency, and deepen water sector reform, based on the characteristics of the water sector and in adaption to the requirement to develop a socialist market economy institution. In accordance with the general requirements of national administrative institutional reform, the MWR was required to further alter its conception and functions to strengthen water sector management and integrated water resources management. It prioritized improving the following areas: the functions of water sector development strategy, planning, policy and legislation; the harnessing of major rivers and lakes; flooding control; rural water sector management; and water and soil conservation. The planning, coordination, supervision, management, and services were to be well conducted. The detailed management activities of personnel, capital, and goods, as well as professional and technical tasks were handed over to agencies. At the same time, the role of the RBO was strengthened to establish a hierarchical and graded national water administration institution consisting of the MWR, RBO, and local WADs (Office of the State Council 1994). The MWR was redefined to integrate the management of national water resources, rivers, reservoirs and lakes and to oversee flood control, water and soil conservation, and water sector management. Therefore, the MWR was required to focus on

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water resources and sector management, rather than infrastructure construction and management, or both hard and soft aspects. During this restructuring, the key issue was the relationship between the MWR and the Ministry of Power in hydropower development. After the coordination between the MWR and the Ministry of Power, it was agreed that hydropower planning (including small hydropower plant and small power grid development planning) should be conformed to river basin and power development planning. The MWR was responsible for the hydropower stations with the key functions of flood control, irrigation, and water supply. The large- and medium-scale hydropower stations and the small hydropower stations with small power grids previously managed by WADs continued to be overseen by WADs. The hydropower station reservoir was required to be operated according to the design document. The functions of MWR were designed to meet this purpose as follows: • Organizing and supervising the implementation of water-related legislation including the Water Law, the Water and Soil Conservation Law and others; researching and formulating strategy, policy, and rules for the water sector. • Organizing the formulation of national water sector development strategic planning, including long-term and annual planning; organizing the formulation, supervision, and implementation of river basin and regional comprehensive plans, in addition to special plans for major rivers, international rivers/lakes, and inter-province rivers. • Integrated managing of national water resources; organizing and conducting national water resources monitoring, investigation, and assessment; formulating, organizing, and implementing national and inter-province long-term water supply and demand plan and water resources allocation plan in conjunction with relevant departments; organizing the water abstraction permit system; sectoral managing of water-saving works; supervising the implementation of water resources protection; mediating water conflicts between sectors and provinces entitled by the State Council. • Managing water bodies and bank lines of rivers, reservoirs, lakes (including manmade waterways, flood passing, and storage and detention zones), river estuaries and beaches, and coastal dykes, overseeing comprehensive harnessing and development of major rivers and lakes. • Managing national water and soil conservation works. • Managing national flood-control and drought-resistance works, handling daily operations of national flood-control and drought-resistance headquarters. • Managing rural water resources development, county and township water supply and drinking water for human and livestock. • Handling urban water resources development, including surface water supply sources construction and water environmental protection. • Organizing the construction and management of hydropower and small power grids in the water sector.

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• Supporting national comprehensive departments to formulate and organize implementation of water-related economic regulation policies, including financial, pricing, taxation, and loan policies. • Conducting sector management of hydrological works. • Conducting sector management of water infrastructure construction; organizing the construction and management of key and inter-province water projects; and conducting sector management of water infrastructure, comprehensive operations and reservoir resettlement. During 1993–1998, the key functions of the MWR did not change significantly from those of 1988–1993. It became increasingly clear that the MWR had been reformed into an administrative and management department, rather than a construction agency.

3.4.3 MWR During March 1998–March 2003 and March 2003–March 2008 In March 1998, the first session of the ninth NPC decided to establish the MWR as the organ of the State Council responsible for water administration. In this largescale governmental restructuring, the functions removed from the MWR included hydropower construction, which was transferred to the National Economic and Trade Commission, and biomethods including tree and grass planting to prevent water and soil erosion in forest-suitable regions. The functions incorporated into the MWR included groundwater management, which was transferred from the Geological and Mineral Ministry (the former MLR and MNR), and mineral and geothermal water development, which now only required an application for a water abstraction permit rather than a mining permit. Finally, responsibilities for guiding urban flood control and groundwater management and protection in urban planning zones were transferred from the Ministry of Construction. Accordingly, the 1998 governmental restructuring of the MWR was considered to have realized the institutionally unified management of water resources. Additionally, in terms of water resources protection, the MWR was required to report water resources protection data to the SEPA. The functions of the MWR therefore included the following (Office of the State Council 1998): • Formulating water-related policies, development strategies, and medium- and long-term development plans; drafting water-related regulations and supervising their implementation. • Implementing integrated management of water resources, including atmospheric water, surface water, and groundwater; organizing the formulation and supervising the implementation of national and inter-province long-term water supply and demand planning, as well as water resources allocation planning; organizing water resources and flood-control impact assessment for socio-economic

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planning, urban planning and key construction projects; issuing national water resources bulletins; organizing the implementation of the water abstraction permit system and water resources fee system; guiding national hydrological works. Drafting water-saving policy, water-saving plans, and water use standards; organizing the guidance and supervision of water-saving works. Formulating water resource protection plans according to national resources and environmental protection legislation and standards; organizing water function zoning and controlling wastewater discharge to drinking waters; monitoring water quantity and quality in rivers, lakes, and reservoirs; and reviewing pollutionloading capacities of water bodies and providing total pollutant discharge opinions. Organizing the guidance of water law enforcement; coordinating and arbitrating water conflicts between sectors and provinces. Formulating economic regulatory measures for the water sector; macro-regulating the use of water resources capital; guiding water supply, hydropower, and multioperation for the water sector; researching and providing economic regulationrelated opinions concerning the water sector, including pricing, loan, and financial policies. Drafting and reviewing infrastructure construction proposals and feasibility reports for large- and medium-scale projects; organizing key water-related scientific research and technological promotion; drafting and supervising the implementation of technical standards for the water sector and specifications and codes for water works. Providing guidance on the management and protection of water infrastructure and of water bodies and their bank lines; organizing and guiding the development and harnessing of major rivers, lakes, river estuaries, and coastal beaches; organizing the construction and management of key or inter-province water infrastructures; organizing safety supervision for reservoir and hydropower dams. Guiding rural water resources development; organizing the coordination of agricultural irrigation development, rural power supply, and township water supply. Organizing water and soil conservation activities. Being responsible for the routine work of the national flood-control and droughtresistance headquarter.

The main characteristic of the 1998 governmental restructuring in China was to clarify the departmental functions to overcome the problems of multi-department management and policy. Therefore, similar and closely related functions were designed to be administered by one department, such as water affairs by the MWR. Almost all water resources management functions that were previously scattered across other departments, such as groundwater management, urban water management, and water saving, among others, were handed over to the MWR. Following these reforms, all resources management functions were incorporated into the MWR. It was specified that water abstraction permits would be unified under the management of the MWR and not assigned to other departments. Therefore, the MWR was

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further reformed into a ministry of water resources management in 1998, rather than a water infrastructure development agency. Regarding an explanation of its functions, few words could be found related to engineering construction. Through the introduction of water rights in 1998 and the revision of the Water Law in 2002, the MWR had been reformed to become more of a water resources agency than a water engineering development and construction agency.

3.4.4 MWR During March 2008–March 2013 and March 2013–March 2018 The 2008 governmental restructuring was an exploration of “super ministry” institution. Those agencies with similar or closely related functions were merged into a single agency. The restructuring followed the principle of “one affair is the responsibility of one department.” In terms of water resources management by the MWR, the task had been almost completed in the 1998 restructuring. Consequently, following the 2008 governmental restructuring, the tasks of the MWR did not change significantly. Some functions, such as economic regulations for the water sector and multi-operation guidance, were transferred out of the MWR. At the same time, the MWR was required to strengthen water resources saving, protection, and rational allocation; guarantee urban and rural water supply; and promote sustainable water resources use. This requirement was a clear signal that water resources development and infrastructure construction had not been the focus of the water sector. Under this direction, the functions of MWR included the following: • Being responsible for guaranteeing rational water resources development and use. Formulating water resources strategic plans and policies, drafting relevant laws and regulations, formulating departmental rules, and organizing the formulation of river basin comprehensive planning and flood-control planning for major rivers and lakes; formulating and organizing the implementation of water project construction systems in accordance with the regulations; being responsible for proposing opinions regarding the amount and direction of water resources fixed asset investment and the arrangements for central governmental funding; approving fixed asset investment projects within the national plan and annual plan according to the entitlement of the State Council; and proposing and organizing the implementation of central government water investment arrangements. • Being responsible for overall allocation and securing of domestic, productive, and eco-environmental water uses. Undertaking integrated water resources management, drafting and supervising the implementation of national and inter-province medium- and long-term water supply and demand planning and water resource allocation planning; organizing to undertake water resources surveying and assessment; undertaking hydropower resources investigation in accordance with relevant provisions; being responsible for water resources regulation in major river basin regions and for key water diversion projects; implementing the water abstraction

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permit system, water resources fee system, water resources justification system, and flood-control assessment system; and guiding water supply in the water sector and in townships. Being responsible for water resource protection. Organizing the formulation of water resource protection plans; organizing the formulation and supervising the implementation of water function zoning in major rivers and lakes; reviewing pollution-loading capacities of water bodies and providing total pollutant discharge opinions; and guiding drinking water sources protection, groundwater resources development and use, groundwater resources management, and protection in urban planning areas. Being responsible for flood control and drought resistance, including undertaking the daily operations of the national flood-control and drought-resistance headquarter. Organizing, coordinating, supervising, and directing national floodcontrol and drought-resistance measures; implementing flood control, drought contingency and emergency regulation in major rivers, lakes, and key water projects; formulating and organizing the implementation of national emergency plans for flood control and drought resistance; and guiding emergency management in the water sector. Being responsible for water-saving works. Drafting water-saving policies, formulating water-saving plans, developing relevant standards, and guiding and promoting water-saving society construction. Guiding hydrological works. Being responsible for hydrological and water resources monitoring, the construction and management of national hydrological stations and networks; undertaking water quantity and quality monitoring of rivers, lakes, and aquifers; and issuing hydrological and water resources information, hydrological forecasts, and national water resources bulletins. Guiding the management and protection of water infrastructures, water bodies, and shorelines. Guiding the harnessing and development of major rivers, lakes, estuaries, and coastal beaches; guiding the construction and operation of water projects; organizing the implementation of the construction and operation of key or inter-province and inter-river basin projects; and managing the resettlement work for water projects. Being responsible for controlling water and soil conservation. Formulating and supervising the implementation of water and soil conservation plans; organizing water and soil erosion comprehensive control, monitoring, forecasting, and periodic announcements; handling the approval, supervision of implementation, and examination of water and soil conservation plans for key construction projects; and guiding the implementation of national key water and soil conservation projects. Guiding rural water resources development and management. Organizing and coordinating farmland irrigation development; guiding engineering construction and the management of rural safe drinking water supply and water-saving irrigation; coordinating water resources development in pastoral areas; and guiding rural water resources service system development. Guiding rural hydropower development in accordance with relevant provisions; rural electrification and small hydropower development for firewood.

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• Being responsible for investigating key water-related violation cases. Mediating and arbitrating water disputes among sectors and provinces; guiding the enforcement and execution of water legislation. Ensuring production safety in the water sector in accordance with relevant laws; organizing and guiding the safety of reservoirs and dams; and organizing the supervision of water projects construction. • Conducting water science and technology and foreign affairs activities. Organizing the conduct of quality supervision in the water sector; drafting, promulgating, and supervising the implementation of the technical standards, specifications, and codes of the water sector; and undertaking water-related statistical activities and handling foreign affairs concerning transboundary rivers. There was no organizational adjustment related to water resources management in 2008. However, function changes and clarifications could be investigated. The MWR reduced the administrative approvals defined by the State Council, and it was no longer in charge of drafting economic regulation policy and guiding multioperation for the water sector. However, it was required to strengthen water resources saving, protection, and rational allocation, to guarantee urban and rural water supply, and to promote sustainable water resources development. Additionally, the MWR was directed to pay closer attention to flood control and drought resistance and to reduce water-related disaster loss. In terms of functions among agencies, the MWR’s responsibilities were clarified as follows (Office of the State Council 2008): • Water resources protection and water pollution control. The MWR was responsible for water resources protection, while the MEP was in charge of water environmental quality and water pollution control. Both departments were required to further strengthen coordination and cooperation, develop an inter-ministerial consultation mechanism, regularly report water resources protection and water pollution control works, and coordinate to solve related key problems. The MEP issued water environmental quality information and was responsible for the accuracy and timing of such information. The MWR issued related water environmental quality information, including hydrological and water resources information, and it was required to coordinate with the MEP to maintain consistency. • River channel sanding management. The management institution for river sanding downstream of Yibin in the mainstream of the Yangtze River was implemented according to the Regulation on River Channel Sanding Management in the Yangtze River. The responsibilities for other rivers were divided as follows: the MWR managed the impacts of river channel sanding on flood control, river channel stability, and dyke safety; the MLR was in charge of guaranteeing the rational development and use of sanding resources in river channels; and the Ministry of Transportation was responsible for the impacts of river channel sanding on navigation safety. The management, supervision, and planning of river channel sanding was required to be led by the MWR with assistance from the MLR and the Ministry of Transportation.

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• Urban water-related affairs management. The detailed management responsibilities for urban water-related affairs were decentralized to local municipal government to determine the management institutions for water supply, water saving, and drainage and wastewater treatment. The State Council departments provided the technical guidance according to specific functions (see Chapter 16). • Three Gorge Project and South-to-North Water Transfer Project. The engineering construction and management during the construction period was conducted by the State Council Office of the Three Gorge Project Construction Committee and the State Council Office of the South-to-North Water Transfer Project Construction Committee. The operation of the projects after construction was managed by the MWR. Therefore, over this period, the MWR paid greater attention to water resources and their management, and even water infrastructure construction was considered in terms of water resources development and allocation. At the same time, the waterrelated organization structure reflected that the MWR was a relatively centralized agency responsible for most water resources management functions. As for water quality management, it was designed more as a coordinated arrangement between the MWR and the MEP in response to key issues and past institutional arrangements.

3.5 MWR and Related Ministries After 2018 The 2018 governmental institutional reform is remarkable. This reform aimed to transfer governmental functions and reduce the barriers limiting the market role in resources allocation. In terms of water-related departments, the following developments occurred (State Council 2018): • The MNR was established to ensure unified practice in the ownership of public natural resources, implement land use control and eco-restoration responsibilities, and resolve the problems of the absent ownership of public natural resources and overlap of spatial plans. The management responsibility for water resources investigation and rights clarification and registration from the MWR were merged into the MNR, along with other functions from the MLR, NDRC, MOHURD, Ministry of Agriculture, State Forestry Administration, and other such agencies. Consequently, the functions of the MNR include the following: – Performing the duties of the owners of all public-owned natural resources including water, etc., and of overall land use spatial control. Drafting natural resources and spatial control legislations, formulating departmental rules and supervising their implementation. – Being responsible for natural resources investigation, monitoring, and assessment. Formulating indicator systems and statistical standards; developing integrated and standardized systems; being in charge of supervision, management,

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and information release; guiding local works; and conducting natural resources basic investigation, specific investigation, and monitoring. Being responsible for natural resources rights clarification and registration unification. Formulating natural resources systems, standards, and norms regarding rights clarification and registration, rights investigation, real-estate survey, dispute mediation and results application; developing and improving the basic platform for national natural resources registration information management; being in charge of natural resources registration data collection, organization, sharing and summarizing; and guiding national natural resources registration works. Being responsible for the natural resources paid use system. Developing a statistics system for handling accounting for, and compiling a balance sheet of public-owned natural resources; drafting assessment standards; rationally allocating assets of public-owned natural resources; and being in charge of the management of natural resources asset valuation. Being responsible for the rational development and use of natural resources. Being responsible for developing a spatial planning system and supervising its implementation. Being responsible for terrestrial ecological restoration and recovery.

• The MEE was set up to formulate and organize the implementation of ecological and environmental policy, planning, and standards. It is also responsible for ecological and environmental monitoring and law enforcement, supervising and managing pollution control, and organizing and conducting central environmental protection inspection. To incorporate separate ecological and environmental protection responsibilities and conduct integrated pollution control supervision and law enforcement, the MEE integrates the key responsibilities of the MEP; the climate change and emission reduction tasks of the NDRC; the groundwater pollution supervision activities of the MLR; the water function zone compliance, pollution discharge outlet setting management, and river basin water environmental protection responsibilities of the MWR; the supervision and guidance of agricultural non-point source pollution control by the Ministry of Agriculture; marine environmental protection by the State Oceanic Administration; and the region-specific environmental protection duties of the Office of the State Council South-to-North Water Transfer Project Construction Committee. The functions of the MEE are as follows: – Being responsible for establishing and improving fundamental ecological and environmental systems. Collaborating with relevant departments to draft and organize the implementation of national ecological and environmental policies and plans, drafting laws and regulations, and formulating departmental rules. Collaborating with relevant departments to compile and supervise the implementation of ecological and environmental plans and water function zones for key regions, river basins, sea areas and drinking water source zones; organizing

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to draft ecological and environmental standards and formulate ecological and environmental baselines and technical guidelines. Being responsible for coordinating, supervising, and managing responses to major ecological and environmental problems. Leading and coordinating investigations of major environmental pollution and ecological degradation accidents; guiding and coordinating local governments in emergency responses to and early warnings of major ecological and environmental incidents; leading and guiding the implementation of the ecological and environmental loss compensation system; coordinating the resolution of cross-region environmental pollution disputes; and coordinating ecological and environmental protection works in key regions, river basins, and sea areas. Being responsible for supervision and management of implementing national emission reduction targets. Organizing the formulation and supervising the implementation of the total pollutant discharge volume control system and the pollution discharge permit system; identifying the pollutant absorptive capacity for waters; developing pollutants and control targets to implement total discharge volume control; supervising and inspecting regional achievements in pollutant discharge reduction; and implementing the responsibility system for ecological and environmental protection targets. Being responsible for the supervision and management of environmental pollution control. Formulating and supervising the implementation of pollution control management systems; coordinating with relevant departments to supervise and manage ecological and environmental protection of drinkable water sources; guiding urban and rural comprehensive ecological and environment control work; and supervising and guiding agricultural non-point source pollution control. Guiding, coordinating, and supervising ecological protection and remediation works. Organizing the compilation of ecological protection plans; monitoring natural resource developmental activities that impact the eco-environment. Being responsible for the supervision and management of ecological and environment access. Authorized by the State Council to conduct EIA for major economic and technological policies, developmental plans, and important economic development plans; reviewing and approving EIA reports on major developmental zones, plans, and projects; and drafting and organizing the implementation of ecological and environmental access checklists. Being responsible for ecological and environmental monitoring. Formulating ecological and environmental monitoring systems and guidelines; drafting ecological and environmental monitoring standards and supervising their implementation; coordinating with relevant departments to integrate planning for ecological and environmental quality monitoring station settings; organizing the implementation of ecological and environmental quality monitoring, supervisory monitoring for pollutant sources and emergency monitoring; organizing surveys, assessments, and precautionary forecasts of ecological and environmental quality; organizing the building and management of the national ecological and environmental monitoring network and the national ecological

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and environmental information network; establishing and implementing an ecological and environmental quality notification system; and issuing integrated national ecological and environmental comprehensive reports and other important information. – Organizing to conduct the central ecological and environmental protection inspection. Establishing and improving the ecological and environmental protection inspection system; organizing and coordinating the central ecological and environmental protection inspection; authorized by the central government to inspect local governments and regional departments and hold them accountable for the effective implementation of central ecological and environmental protection policy; and guiding local government in conducting ecological and environmental protection inspection. – Being responsible for integrated ecological and environmental administrative enforcement. • The MEM was set up to merge national emergency forces and resources. It incorporates the water-related disaster control responsibilities of the MWR and the functions of the National Flood Control and Drought Resistance Headquarters. The Ministry is in charge of the emergency management of the country, including guiding and coordinating water-related disaster control. The MWR is optimized to incorporate the State Council Three Gorge Project Construction Committee and its office, as well as the State Council South-to-North Water Transfer Project Construction Committee and its office. The MWR’s mission is to implement national water resources policy and decisions. The functions of the MWR after 2018 include the following: (1)

(2)

Being responsible for guaranteeing the rational development and utilization of water resources. Drafting water resources strategic plans and policies, legislation and regulations; formulating departmental rules; organizing the compilation of key water resources plans including the national water resources strategic plan, river basin comprehensive plan for major state rivers and lakes, flood control plan, and others. Being responsible for overall water resources allocation and guaranteeing water supply for domestic, productive, and eco-environmental uses. Organizing the implementation of a stringent water resources management strategy; implementing the integrated supervision and management of water resources; drafting and supervising the implementation of the national and cross-regional medium- and long-term water supply and demand plans and water resources allocation plans; in charge of water resources regulation for key river basins, regions, and major water transfer projects; organizing the implementation of the water abstraction permit, water resources justification and flood-control justification systems, and guiding the implementation of water resources fee/tax system; and guiding water supply in the water sector (under the MWR) and managing rural and township water supply.

78

(3)

(4)

(5)

(6)

(7)

(8)

(9)

3 Water Resources Management Institutions

Formulating and organizing the implementation of relevant systems for water resources project construction according to regulations; being responsible for developing proposals regarding the scale, direction, and specific arrangements of central water resources fixed assets investment and for organizing their subsequent guidance and implementation; examining and approving fixed asset investment projects in the national plan and annual plan according to the authorization of the State Council; and formulating the central water resources investment project proposal and being responsible for the supervision and management of project implementation. Guiding water resources protection works. Organizing the formulation and implementation of water resources protection plans; guiding relevant work on drinking water source protection and groundwater development, utilization, management, and protection; and organizing the guidance of the comprehensive management of groundwater over-exploitation zones. Being responsible for water-saving works. Drafting water-saving policies, organizing the formulation, and supervising the implementation of watersaving plans; organizing the formulation of relevant standards; organizing the implementation of management systems such as those for total water use control; and guiding and promoting water-saving society development. Guiding hydrological work. Being responsible for hydrological and water resources monitoring, national hydrological station network construction and management; monitoring rivers, reservoirs, lakes, and groundwater; issuing hydrological and water resources information, forecasts, and national water resources bulletins; organizing and conducting water resources and hydropower investigation and evaluation, as well as water resources carrying capacity monitoring and warning works, according to provisions. Guiding the management, protection, and comprehensive utilization of water infrastructure and waters and their shorelines. Organizing and guiding the construction of water infrastructure networks; guiding the harnessing, development, and protection of important rivers, lakes, and estuaries; and guiding the ecological protection and restoration of rivers and lakes, management of river and lake ecological flow, and connection of rivers and lakes. Guiding and supervising the construction and operation of water infrastructure. Organizing the implementation of construction and operation of key, inter-region and inter-river basin water infrastructures; organizing the development and coordinating the implementation of relevant policies and measures for operation of the Three Gorges Project and the South-to-North Water Transfer Project, including following up project construction, guiding and supervising the safe operation of the projects, organizing works related to project acceptance, and supervising and guiding the construction of local supporting projects. Being responsible for water and soil conservation works. Drafting and organizing the implementation of water and soil conservation plans, organizing the implementation of the comprehensive prevention, monitoring and forecasting

3.5 MWR and Related Ministries After 2018

(10)

(11)

(12)

(13)

(14)

79

of water and soil erosion, and making regular announcements; being responsible for the supervision and management of water and soil conservation in construction projects; and guiding the implementation of national key water and soil conservation construction projects. Guiding rural water resources works. Organizing the construction and repair of large- and medium-scale irrigation and drainage projects; guiding the construction and management of rural drinking water safety projects and relevant watersaving irrigation works; coordinating water resources work in pastoral areas; guiding rural water sector reform and innovation and social service system development; and guiding rural hydropower development, small hydropower transformation, and rural electrification of hydropower. Guiding the management of water resources project resettlement. Drafting and organizing the implementation of relevant water resources project resettlement policies; organizing the implementation of systems for water resources project resettlement acceptance, supervision, and evaluation; guiding and supervising the implementation of post-resettlement supporting policy, coordinating and supervising post-resettlement supporting works for the Three Gorge Project and South-to-North Water Transfer Projects, including coordinating the promotion of counter-supporting works. Being responsible for investigation and handling of major water violations, coordination and arbitration of inter-provincial water disputes, and guiding water administration supervision and water administrative law enforcement; in charge of water sector safe production, organizing and guiding the safety supervision of reservoir, hydropower dam and rural hydropower stations. Conducting water sector science and technology and foreign affairs works. Organizing and conducting water sector quality supervision works; drafting and supervising the implementation of water sector technical standards; dealing with foreign affairs related to international rivers. Being responsible for implementing relevant requirements for comprehensive disaster prevention and mitigation plan; organizing, formulating, and guiding the implementation of flood control, drought prevention plans, and protection standards; undertaking monitoring and early warning of water conditions and drought conditions; organizing the formulation of submitting for approval according to procedure, and organizing the implementation of flood regulation and drought contingency plans for key rivers, lakes and projects; and undertaking technical support for defense against floods, emergency rescue, and key water project regulation during typhoons.

The MWR has been required to transform its functions as follows: it must strengthen the rational development, optimal allocation, saving and protection of water resources; insist on “water saving with priority,” shifting from efforts to increase water supply to greater focus on demand management, as facilitated by strictly controlling water use and increasing water use efficiency; insist on “protection with priority” to enhance water resources, water body, and water infrastructure management and protection, while maintaining river and lake health; and, finally,

80

3 Water Resources Management Institutions

insist on comprehensive consideration to guarantee reasonable water requirements and sustainable water resources development to provide water security for social and economic development.4 The 2018 governmental restructuring has reformed the MWR into an agency for water infrastructure planning, construction, and operation, and for the management of water resources, waters, and their shorelines. At present, it is too early to conclude that the 2018 reform of the MWR is a finalized plan for the water sector over the next 20 or more years or an interim plan for further reform. The 2018 restructuring has changed the concept of “unified water resources management” in institutional design that the water sector and the MWR have pursued since the 1980s and almost realized in 1998. In 2018, the design of the water institution adopted a concept of “quantity and quality separation, resources asset and resources management separation, daily management and emergency management separation.” The water quantity management is assigned to the MWR, with quality management assigned to the MEE. The resources asset is managed by the MNR and resources by the MWR. The daily operations are handled by the MWR, while the MEM is responsible for emergency response.

3.6 Summary: Transition of Water Resources Institutions in China In the 70 years from 1949 to 2018, with the country developing from an agricultural to an industrialized economy, the role of the water sector has experienced significant changes. The focus of the water sector has shifted first from water resources project construction to water resources management and subsequently to water resources saving and protection. The sector’s service purposes have been transformed from agricultural to industrial, domestic, and eco-environmental. The sector’s functions have changed from providing water supply for agriculture and hydropower development to water supply for urban and industrial sectors. The concepts of water have changed from water supply, water resources, and water resources asset. In terms of periodization, the 1950s focused primarily on agricultural water supply, while the 1960s prioritized both hydropower development and agricultural water supply. The late 1970s when China launched its opening and reform policy was a turning point for industrial and urban water supply, while the late 1990s saw the beginning of an emphasis on water resources management. All these changes mark on water resources institution. Over the past 70 years, the key functions of the water resources management agency or MWR have undergone several alterations, as shown in Table 3.1 At the same time, the cross-cutting functions between the MWR and other waterrelated agencies at the central government level could be investigated:

4 http://www.mwr.gov.cn/jg/zzjg/gyslb/.

Elaborated by author

Rural hydropower development

Large-scale power development

Flood-control and drought resistance

Hydrological works

River channel management

Water and soil conservation

Water resource allocation

Water saving

Water resources protection

Water resources management

Water resources development and use

Agricultural and rural water resources development

Water infrastructure management

Water infrastructure development

Key functions

√

√

√ √ √

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

√

1949–1958 1958–1967 1967–1975 1975–1979 1979–1982 1982–1988 1988–1998 1998–2008 2008–2018 2018– √ √ √ √ √ √ √ √ √

Table 3.1 Key function change of MWR during 1949–2018

3.6 Summary: Transition of Water Resources Institutions in China 81

82

3 Water Resources Management Institutions

• Ministry of Agriculture. The issue between the Ministry of Agriculture and the MWR is the irrigation development and rural water resources works. Ordinarily, the MWR holds these functions, but when the MWP had hydropower development functions, irrigation development was assigned to the Ministry of Agriculture. • Ministry of Construction and MOHURD. The key issue between the Ministry of Construction and the MWR is urban water resources management, including urban flood control, water supply, water-saving and groundwater development and management in urban areas. After the 1998 governmental restructuring, almost all urban water management responsibilities were incorporated into the MWR. • Ministry of Geological and Mineral Resources, MLR, and MNR. The key issue between these two departments is the monitoring, investigation, and management of groundwater. After 1998, most functions, particularly in quantity, were shifted to the MWR. In recent years, however, increasing groundwater pollution problems have become a shared concern among the MWR, MEE, and MLR. After 2018, the groundwater quality management was assigned to the MEE. Additionally, with the establishment of ownership holding of public natural resources, the water resources asset is managed by the MNR, while related activities such as resources investigation, assessment, and registration are also conducted by the MNR. • SEPA, MEP, and MEE. The crossover issue is water quality management in water resources protection and pollution control, surface water and groundwater. Before 2018, the MWR was responsible for water bodies in terms of water resources and ecosystem protection, while the MEP and SEPA handled pollution control, with the boundary at land and waters. The 2018 reform transferred full responsibility for water quality management to the MEE. • Ministry of Power. Large-scale hydropower development is the issue between the water and energy sectors. Since the Ministry of Power was organized for extensive hydropower development, the MWR does not hold this function. However, all rural and small hydropower development is managed by the MWR. • MEM. Before 2018, the MWR was responsible for water-related disaster relief. However, following the establishment of the general emergency department, the MWR only retains its planning functions. In almost 70 years, the MWR’s functions have undergone many changes. It developed from an agency for agricultural development in the 1950s to a combination of water infrastructure construction and hydropower development in the 1960s and 1970s. Its key responsibilities concerned water infrastructure construction and water resources management in the 1980s and 1990s, then water resources management in 2000s, but reverted to the management of water resources projects, water resources, and waters after 2018. While China has a long history of important water institutions, changes in water issues in the future could result in the MWR being reformed to merge with an environmental agency, as in Australia and the UK.

References

83

References Office of MWR. (2003). Organization history of water (hydropower) sector (1949-2000). Beijing: China Water and Power Publisher. Office of the State Council. (1994). Notice to issue responsibilities, internal organizations and staffing of MWR. Office of the State Council. (1998). Notice to issue responsibilities, internal organizations and staffing of MWR. Office of the State Council. (2008). Notice to issue responsibilities, internal organizations and staffing of MWR. State Council (2018) Explanation on the State Council Structure Reform Plan. Retrieved July 15, 2020, fromhttp://www.gov.cn/guowuyuan/2018-03/14/content_5273856.htm. Yao, H. (1987). Profile of water resources development history of China. Beijing: Water and Power Publisher.

Chapter 4

River Basin Management

Abstract This chapter has focused on river basin management in China. The major river basins, their water resources, and key issues have been introduced. Legal arrangements, key river basin management systems, and river basin organization and development processes have been studied. The characteristics, experiences, and lessons of river basin management in China have been summarized. A national unified approach for river basin management has been adopted, regardless of the significant differences between these river basins. Authority for the management of inter-jurisdictional river basins is derived from the national government and waterrelated laws in China. In the beginning of the 1950s, China formed a water management institution focused on water project construction. However, this created challenges, such as neglecting or rejecting the water resource benefits from river basin management and multi-purpose utilization of local and departmental interests. The country established and strengthened the river basin management institutions in the seven major river basins. Now, a river basin management model with Chinese characteristics based on planning and coordination has been formed, making river basin management an important factor in promoting integrated development and management of China’s water resources. The RBO has become an important institution linking jurisdictional management and river basin management. Keywords River basin management · River basin management organization · National unified approach · Jurisdictional management and river basin management

The chapter is based on Shen D (2005) Water related risk management in China: a legal and institutional overview. Water International, 30(3): 329–338; Shen, D (2004) The 2002 Water Law and its impacts on riverbasin management in China. Water Policy. 8: 345–364; and Shen D (2009) River basin water resources management in China: a legal and institutional assessment. Water International, 34(4): 484–496. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_4

85

86

4 River Basin Management

4.1 Major River Basins and Water Resource Development 4.1.1 River Basins and Water Resource Issues in China In addition to water resource availability among major river basins as discussed in Chap. 1, the variations in water availability relative to population, arable land, and economic development in these river basins are numerous. The area south of the Yangtze accounts for 80.4% of the water but is available for only 53.6% of the population, 35.2% of the arable land, and 55.5% of the GDP. Per capita water availability south of the Yangtze is thus almost four times that of north of the Yangtze, and it is some eight times greater per hectare of arable land. Runoff in the Hai River Basin is particularly low at only 245 m3 per capita. Even including the net contribution of groundwater, the occupation was still only 343 m3 per capita in 1997. Inland river basins account for about 35% of the country’s land area and, although availability per capita is favorable, extreme shortages are faced locally in desert communities (Table 4.1) (Liu and Chen 2001). The water resource development among these river basins varies significantly, too. Table 4.2 provides river basin water resource development for all of China. In 2016, the total water supply of these river basins was 604.20 km3 , of which 491.24 km3 came from surface water and 105.70 km3 came from groundwater (MWR 2017). In 2016, the water resource development ratio (the ratio between water supply and water resources availability) of the country was 0.213 but included great differentiation among major river basins. In the Hai, Huai, and Yellow River Basins, the ratio reached 0.981, 0.681, and 0.543, respectively. In contrast, in the Yangtze, Pearl, and Southeast River Basins, the figures were only 0.201, 0.177, and 0.117, respectively. The Southwest River Basins lowered to 0.018. In terms of groundwater resource development, in the light of the national average of 0.129, the Hai–Luan River basin reached 0.830, an indication of aggravated overexploitation of the resources. In the Huai River Basin, it was almost 0.681, but very few groundwater resources were exploited in Southern China. The water resource uses among these river basins are also differentiated. Table 4.3 shows river basin water resource use across the country. In 2016, agricultural water use represented 62.38% of total water resource use; in the Northeast, Northwest, and Southwest River Basins, the percentages were all greater than 80%, while in the Yangtze and Southeast River Basins they were less than 50%. The national average industrial water use was 21.65% of total water use; the Yangtze and Southeast River Basins were more than 30%, but the Northwest River Basin only included 2.76% industrial water use. The domestic water use of the country was 13.60%; the population-dense river basins, including the Southeast and Pearl River Basins, had more than 18% domestic water use, while the Northwest River Basin only had 2.61%. The variety in water resource development and use among river basins results in gaps in water problems and water resource management issues. River basins in Northern China face flood control, water shortage, and pollution issues, while in

34.2

9.2

16.7

20.8

100

Southeast Rivers

Pearl River

Southwest Rivers

China

4.6

Inland Rivers

Yangtze River

3.4

Huai River

100

1.6

12.1

5.6

34.3

2.1

100

1.8

6.7

2.5

23.7

5.7

15.2

12.9

11.3

20.2

Arable land

100

0.7

13.5

8.1

23.2

1.7

14.1

6.7

11.6

10.4

GDP

2,220

29,427

3,228

2,885

2,289

4,876

487

707

343

1,646

2,050

25,056

2,813

2,613

2,042

4,140

440

621

311

1501

1,760

20,726

2,377

2,231

1,748

3,331

383

526

273

1,287

28,320

346,350

67,515

80,160

41,745

23,835

6,555

6,000

3,885

9,900

Water resources availability per capita Water resources (m3 ) availability per ha (m3 ) 1997 2010 2050

Source Liu and Chen (2001) Assessment for current situations of water resources and analysis of supply–demand trend in China. China Water and Power Publisher: Beijing Elaborated by the author, based on Liu and Chen (2001). Permission granted by Liu and Chen (2001) on its website subject to proper citation

South to Yangtze

8.5

2.7

Yellow River 16.2

10.0

Hai–Luan River 1.5

Population 9.6

Songhua–Liao River

North to Yangtze

Water resources availability

Percentage in the country

6.9

River basins

Category

Table 4.1 Water and economic indicators among river basins

4.1 Major River Basins and Water Resource Development 87

47.8

129.6

40.8

21.6

60.7

67.7

985.6

16.0

265.6

472.3

Songhua River

Liao River

Hai River

Yellow River

Huai River

Yangtze River

Of which: Taihu Lake

Rivers in Southeast China

Pearl River

116.3

65.6

1.6

249.2

39.7

37.6

23.5

20.3

Groundwater resources (km3 )

River basins Surface water resources (km3 )

473.7

267.5

17.6

995.8

91.1

71.9

37.0

49.8

149.2

Total water resources (km3 )

80.27

30.42

32.99

195.79

44.97

25.77

14.66

9.08

28.21

Surface water supply (km3 )

Table 4.2 Water resource development among river basins in 2016

0.170

0.115

2.062

0.199

0.664

0.425

0.679

0.223

0.218

Surface water development ratio

3.14

0.65

0.03

6.86

15.92

12.13

19.5

10.18

21.69

Groundwater supply (km3 )

0.027

0.010

0.019

0.028

0.401

0.323

0.830

0.501

0.454

Groundwater development ratio

83.81

31.22

33.58

203.86

62.04

39.04

36.31

19.73

50.07

Total water supply (km3 )a

0.177

0.117

1.908

0.205

0.681

0.543

0.981

0.396

0.336

(continued)

Total water resources development ratio

88 4 River Basin Management

821.8

2,841.2

127.6

577.5

Total water resources (km3 )

491.24

52.15

9.9

Surface water supply (km3 )

0.179

0.444

0.017

Surface water development ratio

water supply includes other water supply, such as wastewater reuse, etc Source MWR (2017) 2016 Water Resources Bulletin of China Permission granted by MWR on its website subject to proper citation

a Total

2,738.8

117.4

Rivers in Northwest China

China

144.0

577.5

Rivers in Southwest China

77.0

Groundwater resources (km3 )

River basins Surface water resources (km3 )

Table 4.2 (continued)

105.70

15.31

0.32

Groundwater supply (km3 )

0.129

0.199

0.002

Groundwater development ratio

604.20

67.7

10.24

Total water supply (km3 )a

0.213

0.531

0.018

Total water resources development ratio

4.1 Major River Basins and Water Resource Development 89

15.92

13.24

11.20

8.98

Huai River 44.97 Of which: 41.34 Huai River Basin

1.15

2.08

2.15

12.13

17.63

0.14

25.77

Yellow River

19.50

13.22

8.52

14.66

0.24

10.18

Liao River 9.08 Of which: 5.84 Liao River Basin

Hai River Of which: Hai River Basin

0.47

14.14

23.09

0.16

21.69

28.21

Other sources

Songhua River Of which: Songhua River Basin

Groundwater supply

Surface water supply

Water resources zone

0.80

1.15

39.04

32.94

36.31

14.59

19.73

37.36

50.07

Total water supply

Table 4.3 Water use in major river basins in China in 2016

39.11

42.43

27.27

20.46

22.60

10.50

13.08

30.46

70.62

68.39

69.85

62.11

62.24

71.97

66.29

81.53

83.06

7.79

9.21

5.56

4.19

4.80

1.64

2.76

3.61

4.08

Volume (km3)

41.59

Industry

Volume (km3 )

%

Agriculture

14.07

14.85

14.24

12.72

13.22

11.24

13.99

9.66

8.15

%

6.20

8.72

4.66

5.78

6.31

1.88

3.11

2.54

2.90

Volume (km3)

Domestic

11.20

14.06

11.94

17.55

17.38

12.89

15.76

6.80

5.79

%

1.28

1.67

1.56

2.51

2.60

0.56

0.77

0.77

1.50

Volume (km3)

Eco-environment

55.38

62.04

39.04

32.94

36.31

14.59

19.73

37.36

50.07

Use

Total

(continued)

2.31

2.69

4.00

7.62

7.16

3.84

3.90

2.06

3.00

%

90 4 River Basin Management

491.24

China

105.7

15.31

0.32

7.08

0.24

0.01

0.14

604.02

67.7

10.24

59.08

83.81

31.22

203.86

Total water supply

376.8

61.97

8.2

31.94

49.17

13.64

62.38

91.54

80.08

54.07

58.67

43.69

47.50

130.8

1.87

0.88

14.99

17.92

10.19

73.53

Volume (km3)

96.83

Industry

Volume (km3 )

%

Agriculture

Source MWR (2017) 2016 Water Resources Bulletin of China Permission granted by MWR on its website subject to proper citation

52.15

Northwest Rivers

1.47

9.9

0.36

3.14

Pearl River 80.27 Zone 57.25 Of which: Pearl River Basin

Southwest Rivers

0.39

0.65

30.42

1.22

Southeast Rivers

6.86

195.79

Other sources

Yangtze River

Groundwater supply

Surface water supply

Water resources zone

Table 4.3 (continued)

21.65

2.76

8.59

25.38

21.38

32.64

36.07

%

82.16

1.77

1.06

11.37

15.79

6.63

31.2

Volume (km3)

Domestic

13.60

2.61

10.35

19.25

18.84

21.24

15.30

%

14.26

2.09

0.1

0.77

0.93

0.75

2.3

Volume (km3)

Eco-environment

2.36

3.09

0.98

1.30

1.11

2.40

1.13

%

604.02

67.7

10.24

59.07

83.81

31.22

203.86

Use

Total

4.1 Major River Basins and Water Resource Development 91

92

4 River Basin Management

Table. 4.4 Surface water quality classification in China in 2016 (%)a River basins

National Monitoring transects

Class I

Class II

Class III

Class IV

Class V

Over Class V

Liao River

106

1.9

31.1

12.3

22.6

17.0

15.1

Songhua River

108

0

13.9

46.3

29.6

3.7

6.5

Hai River

161

1.9

19.3

16.1

13.0

8.7

41.0

Yellow River

137

2.2

32.1

24.8

20.4

6.6

13.9

Huai River

180

0

7.2

46.1

23.9

15.6

7.2

Yangtze River

510

2.7

53.5

26.1

9.6

4.5

3.5

Pearl River

165

2.4

62.4

24.8

4.8

1.8

3.6

Rivers in Zhejiang and Fujian Provincesa

125

3.2

53.6

37.6

3.2

2.4

0

Southwest Rivers

63

1.6

79.4

9.5

7.9

1.6

0

Northwest Rivers

62

4.8

75.8

12.9

4.8

1.6

0

China

1617

2.1

41.8

27.3

13.4

6.3

9.1

a The

area almost equal to Southeast Rivers Source MEP (2017) 2016 China Environmental Bulletin Permission granted by MEP on its website subject to proper citation

Southern China river basins are challenged by flood control, multi-purpose uses, and pollution. At the same time, due to rapid economic development and delayed water pollution prevention, worsening water quality has become a serious threat in China in the last 40 years. Table 4.4 summarizes the data on water quality in these river basins. The poor water quality of the Yellow, Huai, and Hai River Basins reflects high rates of urbanization and industrialization and the inadequate dilution capacity of these regions. Water quality in the northern rivers, eutrophication and pollution of major lakes and deteriorating groundwater quality in urban areas remain major risks in China. Therefore, river basins in China demonstrate a variety of water resources and issues, not only due to geographical differences but also because of social and economic development. On the one hand, these river basins are facing both traditional and modern water issues, such as providing a greater water supply while maintaining adequate ecological water flows, dealing with water quantity as well as quality. On the other hand, these river basins vary significantly. In some less developed river basins, water supply is short, but water quality is good. In developed river basins, water resources are limited and have poor water quality. In Southern China, water

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shortage comes from water pollution, but in Northern China the shortage is due to limited resources. Given the significant variety among river basins in China, it is critical to address river basin challenges in the water sector.

4.2 River Basin Management in China: Legal Framework China adopts a centralized system. All legislation issued at the central level must be implemented at the local provincial and county levels. Therefore, the legal framework for river basin management developed at the national level must be enforced within each river basin regardless of the diversity of river basin water resources and issues. The history of modern water legislation in China is short. The first Water Law of the PRC was issued in 1988. In terms of river basin management legislation, the 1988 Water Law only states, “in the development and utilisation of water resources as well as in controlling water disasters, overall planning shall be undertaken with river basin or region as the basic unit.” The 2002 Water Law is more descriptive. The law prescribes a water resources management institution; planning, development, and utilization; protection, allocation, and saving; and dispute resolution, enforcement, and legal liabilities. The 2002 Water Law developed the Chinese river basin management framework to include an institutional setting and systematic design to implement river basin management, as well as establishing a relationship with jurisdictional management. The law outlined a river basin management framework covering water resource planning, water resource development and use, water resource protection, water resource allocation, and water dispute resolutions. At the same time, other water-related legislation defines the specific issues in river basin management as follows: The Flood Control Law. This law dictates that flood-control works are conducted by a system of integrated planning according to river basin or region, hierarchical implementation, and river basin management combined with jurisdictional management (Article 5, 1997 Flood Control Law). RBOs set up by WAD of the State Council for major state rivers and lakes have responsibility of coordination, supervision, and management for flood control. According to laws, decrees, and entitlements from the WAD of the relevant State Council, the flood-control headquarters in major state rivers and lakes, consisting of provincial and RBO leaders and with its operational agency setup in RBOs, direct flood-control works in relevant jurisdictions (Article 8). River course and lakes are managed according to the principles of river system integrated management and hierarchical management (Article 21, 1997 Flood Control Law; Article 21, 2016 Flood Control Law). The Water Pollution Control Law. This law dictates that water pollution shall be planned based on river basin or region (Article 10, 1996 Water Pollution Control Law; Article 15, 2008 Water Pollution Control Law; Article 16, 2017 Water Pollution Control Law). The water resources protection agency in the state major rivers and

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lakes is responsible for monitoring the environmental water quality of water bodies at provincial boundaries and reporting results to the EPAD and WAD of the State Council (Article 18, 1996 Water Pollution Control Law; Article 26, 2008 Water Pollution Control Law; Article 26, 2017 Water Pollution Control Law). The environmental protection administrative department of the State Council, in conjunction with WAD of the State Council and relevant provincial governments, shall establish river basin water environmental protection coordination mechanisms to implement unified planning, standards, monitoring, and control (Article 28, 2017 Water Pollution Control Law). The Water and Soil Conservation Law. This law defines RBO’s supervision and management responsibilities regarding water and soil conservation (Article 5, 2010 Water and Soil Conservation Law). The 2009 Decree on Drought Resistance. This decree establishes that RBOs in the major state rivers and lakes are responsible for coordinating drought resistance within their jurisdictions. RBOs take the detail works of the river basin flood-control and drought-resistance headquarters (Article 7, 2009 Decree on Drought Resistance). Thus, the legal framework for river basin management in China is outlined by the 2002 Water Law and supported by specific water-related laws and decrees. The legal definitions of functions and institutions of river basin management are included in different laws and regulations, each focusing on a particular aspect of river basin management. As such, river basin management legislation in China is scattered.

4.3 River Basin Management Systems in China: Implementation Design The system is complex and can be approached from various angles. River basin management could be grouped into key activities, such as fishery, navigation, water resource use, and so on, with the focus of the responsibilities placed on points such as policy formulation, planning, implementation, and supervision. In the following section, we apply process-based grouping methodology. The key systems related to river basin management (mainly water quantity) in China could be described as follows.

4.3.1 River Basin Water Resource Monitoring and Assessment Article 16 of the 2016 Water Law dictates that RBOs shall improve dynamic monitoring of water resources.

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More information is available in the 2007 Hydrological Regulation of the PRC. The regulation stipulates that RBOs organize, implement, and manage relevant hydrological works within their jurisdictions according to the legislation and rights authorized by WAD of the State Council (Article 4). RBOs are responsible for river basin hydrological development plans according to national hydrological development plans, which they may implement after gaining the approval of MWR (Article 8). Hydrological monitoring stations and networks shall be developed according to the principles of river basin and regional combination, and region subject to river basin (Article 11). Hydrological stations administrated by provincial water resources department with significant roles in river basin water resource management and disaster relief shall be technically guided and supervised by RBO (Article 17). With relation to data collection, data from key groundwater sources and overdraft regions, as well as from wastewater discharge outlets and key transacts, shall be collected and submitted to RBOs or provincial hydrological agencies (Article 25). Regarding water quality and pollution monitoring, the water resources protection agency at RBO is responsible for water environment monitoring along the provincial boundaries of water bodies (Article 26, 2017 Water Pollution Control Law). The environmental administrative department of the State Council must clarify river basin ecological and environmental protection requirements, organize river basin resource holding capacity monitoring and assessments, and implement river basin resources and environmental holding capacity precautions (Article 29, 2017 Water Pollution Control Law).

4.3.2 River Basin Planning Water resource development, use, saving, and protection as well as water-related disaster relief shall be integrated based on river basin and region. River basin plans consist of a comprehensive plan and a master plan (Article 14, 2016 Water Law). The regional plan in the river basin is subordinated to river basin plan (Article 15, 2016 Water Law). The river basin comprehensive plan for major state rivers and lakes shall be compiled by MWR, with collaboration from relevant departments of the State Council and provincial governments and ultimate approval by the State Council. The river basin comprehensive plan for interprovincial rivers and lakes shall be compiled by relevant RBOs and provincial WADs (Article 17, 2002 Water Law). Water projects must be in accordance with the river basin comprehensive plan (Article 19, 2016 Water Law). In the master plan, flood-control plans are subject to the river basin/regional comprehensive plan. Likewise, regional flood-control plans are subject to the river basin flood-control plan (Article 9, 2016 Flood Control Law). The flood prevention schemes for interprovincial rivers and lakes are formulated by RBOs in conjunction with the provincial WADs concerned, reviewed by relevant provincial governments,

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and submitted to the State Council or its authorized agency for approval (Article 10, 2016 Flood Control Law). Water pollution control shall be integrated based on river basin or region. The water pollution control plans for key state river basins and lakes shall be compiled by the environmental administrative department, the economic comprehensive regulation department and water department of the State Council, and relevant provincial governments; they are then submitted to the State Council for approval. The water pollution control plan for other interprovincial river basins and lakes shall be compiled by relevant provincial environmental protection administrative departments with provincial water departments and prefectural governments, reviewed by relevant provincial governments, and submitted to the State Council for approval (Article 16, 2017 Water Pollution Control Law).

4.3.3 River Basin Water Resource Allocation To regulate runoff and allocate water resources, water resources allocation plans must be formulated with river basins as units and according to river basin plan and water resources medium- and long-term supply and demand plan. The water resources allocation plans of interprovincial river basins, as well as drought contingency plans, are formulated by the applicable RBOs together with relevant provincial governments, and they are submitted to the State Council or its authorized department (normally MWR) for approval (Article 45, 2016 Water Law). Annual water resource regulation plans shall be prepared by WADs above countylevel or RBOs, based on the relevant water resource allocation plans and annual inflow forecasts (Article 46, 2016 Water Law). In terms of water abstraction permits, the implementation of water abstraction must be in accordance with the river basin comprehensive plan and approved water resource allocation plans or agreements (Article 6, 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection). The total approved water consumption in a river basin shall not exceed the river basin’s water resource availability. The total regional approved abstraction volume shall not exceed the regional volume issued by RBO or upper level WADs (Article 7, 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection). The water abstraction permit implements a hierarchical approval system. RBOs are responsible for water abstraction as follows (Article 14, 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection): above-defined volume at the mainstreams of the Yangtze, Yellow, Huai, Hai, Luan, Pearl, Songhua, Liao, Jinsha, and Han Rivers; Taihu Lake, and other defined river courses in interprovincial rivers and lakes; above-defined volume at the defined river courses in transboundary rivers and international boundary rivers; above-defined volume at provincial boundary rivers and lakes; cross-province abstraction; large construction projects approved by the State Council or its investment administrative department; and at the river courses or lakes directly managed by RBOs.

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4.3.4 River Basin Water Resource Protection Water resource protection in China includes the systems of water function zoning and wastewater discharge outlets into water bodies, as defined by the 2002 Water Law. The plans for water function zones of major state rivers and lakes shall be formulated by MWR in collaboration with the environmental protection and other relevant departments of the State Council and provincial governments. These plans are then submitted to the State Council for approval. The plans for water function zones of the interprovincial rivers and lakes shall be formulated by RBO and relevant provincial water and environmental protection departments; these are then reviewed by relevant provincial governments, examined by MWR and the environmental protection department of the State Council, and approved by the State Council or its authorized agency. RBO shall verify water body pollution assimilation capacity according to the water quality requirements of water function zones and the body of water’s purification capacity, put forward the opinion on pollution discharge volume limit to environmental protection agencies. RBOs shall monitor water quality in water function zones (Article 32, 2016 Water Law). RBOs are responsible for the supervision and management of wastewater discharge outlet into water body if the outlet is set up in the river courses or lakes directly managed by the RBOs, or together with water abstraction permit applications managed by the RBOs, or its required EIA approved by the environmental protection department of the State Council (Article 4 and Article 5, 2004 Supervision and Management Methods of Discharge Outlet into Waters).

4.3.5 River Basin Flood Control River and lake harness and flood-control engineering projects shall conform to river basin comprehensive plans and combine with development of river basin water resources (Article 3, 2016 Flood Control Law). Interprovincial river basin floodcontrol plans are formulated by the relevant RBO with relevant provincial governments and submitted to the State Council or its authorized agency for approval (Article 39, 2016 Flood Control Law). The flood-control plan of interprovincial rivers shall be formulated by the relevant RBO with relevant provincial governments and submitted to the State Council and its authorized agencies for approval (Article 40, 2016 Flood Control Law). Flood regulation plans shall be formulated according to approved flood-control plans. The flood regulation plans of interprovincial river basins shall be formulated by the relevant RBO with relevant provincial governments and submitted to the state or river basin flood-control headquarters (Article 12, 2005 Regulation of Flood Control).

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4.3.6 River Course Management River course harness and engineering projects to direct flow and protect dykes must consider the relationships between upstream and downstream and left and right banks. The planned realigning and leading lines for major state rivers are formulated by RBOs and submitted to MWR for approval. Those for inter/trans-provincial rivers or lakes should be formulated by the RBO in conjunction with WADs and other relevant provincial departments, reviewed by the provincial governments and submitted to MWR for approval (Article 19, 2016 Flood Control Law). River course and lake management is performed according to principles of combination of integrated management and hierarchal management based on river system. The main river course of major state rivers and lakes, trans-province important river courses and lakes, and provincial and national boundary river courses and lakes are managed by RBOs and provincial water departments according to the authority entitled by MWR (Article 5, 2017 River Course Management Regulation). The management scope of river courses and lakes directly managed by RBO is delineated by RBO with relevant local governments above county (Article 21, 2016 Flood Control Law).

4.3.7 Interprovincial Water Dispute Mediation Interprovincial water disputes are normally dealt with at the river basin level. If an interprovincial water dispute cannot be solved by negotiation between the parties, MWR or its RBO is in charge. RBO is responsible for interprovincial water dispute works within its jurisdiction. RBOs, in conjunction with the relevant provincial water departments, formulate water-related plans for interprovincial rivers. The interprovincial water affair negotiation mechanism shall be developed, and RBOs must organize the provincial departments to hold regular interprovincial water affair negotiation meetings and sign interprovincial water affair agreements if necessary (Article 3, 6,10 and 13, 2004 Interprovincial Water Dispute Precaution and Handling Methods). Many of these river basin management systems are designed for water quantity management or with reference to MWR’s functions. As discussed with relation to river basin legislation, the fundamental legislation for river basin management is the 2002 Water Law. The following sections explain why river basin management systems in China focus on water quantity management and the institution.

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4.4 RBO in China: Institutional Setting The river basin management institution has a long history in China. During the first emperor’s regime in the Qin Dynasty (221 BC-207 BC), the central government appointed residential or temporary officials or missions to be responsible for river harnessing. During the Yuan (1271 AD-1368 AD), Ming (1368 AD-1644 AD), and Qing (1644 AD-1911 AD) Dynasties, a permanent trans-jurisdictional agency, or river governor, was established in order to guarantee grain transportation and sustain financial support for the capital, as well as to control flood disasters in the Yellow, Huai, and Hai River Basins. In the 1920s and 30 s, modern RBOs were set up by the central government, including the Huai Conducting Commission in 1928, North China Water Resources Commission in 1928, Yangtze Water Resources Commission in 1935, Yellow River Water Resources Commission in 1933, and Pearl Water Resources Bureau in 1937 (Compiling Group 1979).

4.4.1 RBO Development After 1949 4.4.1.1

1950s

After 1949, in light of large-scale water infrastructure development, RBOs played an important role in river basin comprehensive development and use. At the same time, RBOs underwent several restructuring efforts, which can be grouped into five time periods. During the 1950s, the central government paid significant attention to river basin development and management. In November 1949, MWR decided to “set up directleading Yellow River Water Resources Commission, Yangtze River Water Resources Commission, and Huai River Water Resources Engineering General Bureau; in order to comprehensively plan water resources development in key water courses to mutually consider disaster relief and development between upstream and downstream, mainstream and tributary in every river system.” In October 1950, the State Council issued its “Decision on Harness Huai River” to revoke the Huai River Water Resources Engineering General Bureau and set up the Huai River Harness Commission. In addition to setting up RBOs for the Yellow River, Yangtze River, and Huai River, MWR set up the direct-leading water resources survey and design institutes in great zones (areas above the provincial level but under the state level, such as Northern China, Southwest China, Northwest China, etc.). These institutes were not only responsible for compiling river basin plans, but they also reviewed regional and departmental design plans and budgets and coordinated interprovincial water conflicts. National water resource design institutes conducted certain tasks of river basin management without RBOs until the beginning of the 1980s.

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During this period, RBOs and the institutes conducted extensive investigations, research, and assessments, and they completed comprehensive plans for all seven key rivers. These plans defined development tasks, orders and measures for the river basins, and were used as the basis of river basin water resource development and management until the 1980s. In the 1950s, when the country began large-scale water resource development, local governments did not have adequate technical capacities or extensive local water agencies. Given this historical context, RBOs and institutes with strong technical forces had a wide range of responsibilities, including preparation of comprehensive river basin plans and hydrometeorological observations; management of river courses, dykes, and irrigation and drainage; river basin flood-control regulation; and planning, surveying, design, and execution of water projects. This range of responsibilities was closely linked to the powerful administrative authority of RBOs. In the 1950s, the directors of river basin commissions were appointed by the State Council. The deputy directors came from the leaders of the provinces. RBOs had the authority to review projects and allocate investments. For example, the Huai River Water Resources Commission was directly led by the State Council, with the director replaced by the vice premier. The deputy directors were the provincial party secretaries of CPC or governors of the river basin. The line agencies were set up in the provinces, prefectures, counties, and even countries, with the local government leaders as the leaders. The Commission arranged the planning, budgeting, and staffing of the agencies. This highly centralized water management model played a major role in harnessing the Huai River Basin and managed sensitive and complex interprovincial water affairs.

4.4.1.2

End of 1950s to the End of the 1970s

From the end of the 1950s to the end of the 1970s, China underwent the Great Leap Forward, the “Three Years Natural Disaster” and the Cultural Revolution, and RBOs were seriously impaired and re-emphasized during this period. In 1958, the Huai River Harness Commission was revoked, and river basin harness activities were undertaken by individual provinces. Additionally, the local agencies under the Commission became water resource bureaus within local governments. In the same year, the Pearl River Basin Planning Office, which was established in 1956, was removed. In 1956, the duties of the Yangtze River Water Resources Commission were adjusted. The bureaus set up at the upper, middle, and lower reaches were removed, and the dykes and projects managed by the Commission were handed over to the provinces. The Yangtze River Basin Planning Office replaced the Commission, specializing in river development and harness research, river basin plan compilation, and key project design. In 1960, the Shandong and Henan River Affair Bureaus, overseen by the Yellow River Water Resources Commission in charge of downstream river course management, were handed over to local governments. In 1961, the Northwest Yellow River Engineering Bureau of the Yellow River Water Resources

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Commission, which was responsible for water and soil conservation and development of the upper and middle reaches of the Yellow River, was removed. Along with the demolition of the RBOs and the weakening of management functions, challenges such as river basin plan implementation and serious interprovincial water conflicts arose, especially frequent interprovincial drainage and water use disputes in the Yellow–Huai–Hai River Basin Plain in the 1960s. At the same time, the survey and design institutes under MWR could not function well in river basin management. Therefore, the central government re-examined river basin management. In 1962, management of the river course in the downstream of the Yellow River, which was higher than the land surface around the river, was returned to the Yellow River Commission. In 1963, the Jindi River Engineering Management Bureau was established as part of the Yellow River Commission to deal with severe interprovincial water conflicts. In 1964, the Zhangweinan Canal Management Bureau was set up under direct management from MWP before being transferred to the Hai River Basin Water Resources Commission in 1979. In response to the problems of the Huai River, the State Council established the State Council Huai River Planning Group in 1969, chaired by members of the Political Bureau of the Central Committee of the CPC, leaders from MWR, and the governors of relevant provinces. In 1971, the Office of the State Council Huai River Planning Group was established and placed in charge of reformulating river basin plans, organizing the construction of key projects, producing flood-control regulations, and handling interprovincial conflicts.

4.4.1.3

1970s to 1988

The period from 1970 to 1988 was a time of recovering RBOs and their functions in China. After re-emphasizing river basin management, the Huai River Harness Commission was restored by the Office of the State Council Huai River Planning Group in 1977 and renamed as the Huai River Water Resources Commission in 1989. The Hai River Water Resources Commission and the Pearl River Water Resources Commission were established in 1979, and the Songliao (Songhua–Liao River) River Basin Water Resources Commission was created in 1981. In 1983, the Yangtze River Water Resources Commission was restored. In 1984, the Taihu Lake Basin Bureau was established in the Taihu Lake Basin in the lower reaches of the Yangtze River. Thus, China’s seven major rivers have established river basin management institutions, all of which are under the MWP. Unlike RBOs in the 1950s, water resource agencies were set up in local governments at all levels in the 1960s and had adequate technical capacity. As such, restored and new RBOs in this period did not implement the highly centralized river basin management model of the 1950s and mainly engaged in the following tasks: (1) revising and supplementing river basin comprehensive plans; (2) preparing and managing annual investment plans for river harnessing and development, organizing and approving design of key water projects in river basins, and being responsible for construction and management of interprovincial and river basin control projects; (3) managing river basin flood-control and interprovincial water resource allocation; (4)

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supervising operation of water projects managed by the provinces; and (5) mediating interprovincial water disputes. With national social and economic developments, environmental and ecological problems became increasingly serious. After 1975, RBOs set up water and soil conservation management departments and the river basin water resources protection bureau, extending management to include environmental and ecological protection. To some degree, river basin management comprised both water quantity and quality.

4.4.1.4

1988–2002

This basic framework of RBO lasted into the twenty-first century, with seven commissions for interprovincial river basins under the direct administration of MWR. Before the 2002 Water Law, their functions were delegated by MWR. After the issuance of the 1988 Water Law, MWR was reorganized as the WAD of the State Council. RBOs were not defined as governmental agencies but rather as residential missions of MWR tasked with implementing water administrative rights according to mandates. The 1988 Water Law declared that “the state implements a water resources system combining integrated management with hierarchical and departmental management. The WAD of the State Council is responsible for the integrated water resource management for the nation, the relevant departments of the State Council are responsible for relevant water resource management works to coordinate with the WAD of the State Council according to the arrangements of the State Council. The local WADs and relevant departments are responsible for relevant water resource management works according to functions by the local government at the same level” (Article 9, 1988 Water Law). RBO is therefore not defined in the 1988 Water Law. Although without legal status and clarification before the 1980s, RBOs had significant power over river basin management from the State Council, with the authority to appoint leaders of the organizations and arrange central investments by these commissions. The reforms after the 1980s greatly changed RBOs: rapid social and economic development required more support for water resources and the environment, and decentralization strengthened local and sectoral economic independence. The reduction of central investment and downgrade of the administrative level of RBOs weakened river basin management and caused the problems described in the following paragraphs: Ambiguous legal status of RBOs. The 1988 Water Law did not define river basin management in China or the legal status of RBOs. The law stated that the water administrative body and law enforcement agencies were water resources departments at each level of government. In institutional reform with aims to clarify functions between governmental organizations, agencies, and enterprises, RBOs were defined as an agency. In China, an agency is defined as a non-profit organization that provides socially beneficial services without administrative functions.

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Lack of effective regulatory instruments. RBOs lacked administrative management and enforcement rights. The law defined river basin plans as the basis for water resource management and development but did not clarify the enforcement agency and procedures, which resulted in RBOs’ inability to manage activities violating the plan. The other issue is that RBOs did not have the rights to manage key river basin projects, except direct-control interprovincial river courses with severe water conflicts in the Yellow, Huai, and Hai River Basins. Lack of coordination mechanisms. RBOs were agencies set up by MWR to plan, develop, and manage water resources, but they did not allow for the participation of relevant departments and local governments for coordination and decision-making. Limits in functions of MWR. After the 1998 governmental restructuring efforts, MWR was defined as the WAD of the State Council, but the management functions of hydropower, navigation, and water pollution control were assigned to other departments. RBOs, as the residential missions of MWR, were limited by the functions of MWR. Internal structural problems of RBOs. RBOs were set up for extensive river basin development. When coupled with infrastructure construction, they formed a technical team with project plans and survey, design, building, and operation expertise that were dependent on the governmental budget. Under the planned economy, this team emphasized technical and engineering management rather than water resource management and water administration. These deficiencies in river basin management and RBOs from the 1980s were revealed in the 1991 Tai Lake and Huai River floods. The State Council’s water legislation after 1991—including the 1991 Regulation of Flood Control, 1993 Water Abstraction Permit Implementation Methods, and 1995 Huai River Basin Temporary Regulation for Water Pollution Prevention and Control—concentrated on river basin management and defined the functions of RBOs in water affairs. However, each of these were based on the 1988 Water Law, making the need to revise the 1988 Water Law evident.

4.4.1.5

2002 to the Present

The 1988 Water Law was revised in 2002. In terms of river basin management, the law prescribes that “the state shall exercise a water resource management system of river basin management in conjunction with jurisdictional management. The WAD under the State Council shall be in charge of the unified administration and supervision of water resources throughout the country. The RBOs set up by the WAD under the State Council on the state designated major rivers and lake(s) shall exercise within their jurisdictions their water resource management and supervision responsibilities as prescribed by the laws and administrative statutes and assigned by the WAD under the State Council. The WAD of local people’s governments at or above the county

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level shall be responsible for the unified management and administration and supervision of the water resources within the corresponding administrative boundaries in accordance with the prescribed authorities” (Article 12, 2002 Water Law). The most significant revisions included in the 2002 Water Law are the definition of water resources management institution as a combination of river basin management and jurisdictional management, the clarification of the legal status of RBOs at the national level, and the details of river basin management.

4.4.2 Functions and Structures of RBOs Currently, there are six river basin commissions and one lake bureau under MWR administration. Although there are several differences in the nature and extent of these commissions’ authority and responsibility, in general, the functions of these agencies are as follows (given Yellow River Water Resources Commission as an example).1 (1)

(2)

Ensuring the rational development and utilization of water resources in the river basin. Entrusted by MWR, organizing to formulate and supervising to implement river basin and interprovincial river basins and lakes comprehensive plan, related master plans; drafting water resources policies and regulations for the river basins; organizing the preliminary work of river basin control water projects, interprovincial key water projects, and central water projects; according to the authorization, being responsible for review and approval of relevant planning and central water projects, and the compliance review of relevant water projects in the river basin; conducting technical reviews on local large and medium-sized water projects; being responsible for proposing and implementing annual investment plan for central water project, water resources preparation work, and direct-managed infrastructure projects in the river basin; and organizing and guiding post-assessment of relevant water resources plan and construction projects within the river basin. Managing and supervising water resources, and comprehensively coordinating domestic, productive, and ecological water use in the river basin. Being responsible for implementing and supervising “Yellow River Water Resources Regulation Management Regulation”; entrusted by the MWR to carry out investigation and evaluation of water resources and hydropower in the river basin according to regulations; in accordance with regulations and authorizations, organizing to formulate and implement interprovincial water resources allocation plans, river basin annual water resources regulation plan, and water contingency plan; organizing to implement river basin total water abstraction control, water abstraction permit system, and water resources justification system in the river basin; and conducting water resources regulation for river basin and important water projects according to jurisdiction.

1 https://www.yrcc.gov.cn/zwzc/zjhw/znjg/201108/t20110810_26215.html.

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(3)

(4)

(5)

(6)

(7)

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Protecting water resources in the river basin. Organizing to formulate river basin water resources protection plan; organizing to formulate and supervising to implement interprovincial water function zones, verifying the water pollutant assimilation capacity of waters, proposing opinions on the total pollutant discharge limit; being responsible for reviewing setting-up of discharge outlet into waters within jurisdiction; monitoring water quality of provincial boundary water bodies, important water function zones, and important discharge outlets into waters; guiding and coordinating river basin drinking water source protection, groundwater development, and utilization and protection; and guiding local (provincial) water saving and water-saving society construction in the river basin. Preventing and controlling floods and droughts in the river basin, and undertaking daily work of river basin flood-control and drought-relief headquarters. Organizing, coordinating, supervising, and guiding river basin flood control and drought-resistance, and implementing flood-control and drought–relief regulation and emergency water resources regulation for key water projects in accordance with regulations and authorizations; organizing to implement river basin flood-control assessment system; organizing to formulate and supervising to implement river basin flood-control plan; and guiding and supervising the management and compensation for operation of flood storage and detention areas in the river basin; and organizing and coordinating the emergency management of public water affairs according to regulations. Guiding hydrological work in the river basin. Being responsible for hydrological and water resources monitoring, and construction and management of hydrological station networks in accordance with regulations and authorizations; monitoring water quality and water quality monitoring of important waters; directly managed rivers, lakes, and reservoirs; inter-basin transfer; organizing and coordinating groundwater monitoring; and issuing river basin hydrology and water resources information, forecasts, river basin water resources bulletin, and river basin sediment bulletin. Guiding management and development of rivers, lakes, estuaries, and coastal tidal flats in the river basin. In accordance with jurisdiction, managing and protecting water resources facilities, waters and their shorelines in the river basin; and the construction, operation, and management of important water projects; guiding resettlement management work-related water projects in the river basin; being responsible for examination, approval, and supervision of construction projects within the entitled river course management scope; managing sand mining in directly managed and entitled river courses, and guiding and supervising works related to sand mining management in the river basin; and guiding the supervision and management of water resources construction market within the river basin. Guiding and coordinating river basin water and soil conservation works. Organizing prevention, supervision, and management of water and soil erosion in key prevention and control areas; implementing central-invested water and soil conservation projects, and guiding and supervising implementation of

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national key water and soil conservation construction projects in the river basin; entrusted by MWR, organizing to prepare and supervising implementation of the river basin water and soil conservation plan; and supervising and inspecting implementation of water and soil conservation plan for large- and medium-sized production and construction projects approved by the state; and organizing monitoring, forecasting, and announcement of water and soil loss in the river basin. (8) Supervising water administration and law enforcement within the scope of functions and powers. Investigating and dealing with illegal water activities; mediating interprovincial water disputes; guiding safety production in water sector in the river basin; being responsible for safety production work within river basin management organization, and quality and safety supervision of the water projects directly managed; and organizing and guiding safety supervision of water projects such as reservoirs and hydropower station dams in the river basin. (9) Guiding rural hydropower water resource development in the river basin; carrying out water resource scientific and technological, foreign affairs, quality, and technical supervision activities; and undertaking relevant water resource statistical analysis. (10) Operating or supervising state-owned assets of central water projects, such as river basin control and interprovincial water projects, in accordance with regulations or authorization; and researching and proposing water supply prices and on-grid electricity prices. However, these organizations have been allocated responsibilities that go beyond the particular river or lake or river basin concerned, and thus they essentially act as regional offices of the MWR. For example, the Yellow River Water Resources Commission is authorized to act in some inland river basins in the Xinjiang, Qinghai, Gansu, and Inner Mongolia regions; the Yangtze River Water Resources Commission is authorized to manage the regions west of the Lancang River (including the Lancang River itself); the Songliao River Water Resources Commission is authorized to manage the international rivers in Northeast China; the Pearl River Water Resources Commission is authorized to manage the Han River and international rivers east of the Lancang River, the coastal rivers in Guangdong Province and the Guangxi Zhuang Autonomous Region, Hainan Province; the Tai Lake Bureau is authorized to manage the Qiantang River, Zhejiang Province, and Fujiang Province (excluding the Han River); and the Hai River Water Resources Commission is authorized to manage the northern Shandong Province. These commissions or bureau may have functional sections for planning and programming, water administration, financial and economic regulation, science and technology research, project construction and management, water and soil conservation, and flood control and drought resistance. In some commissions, specific departments may be established, such as the river course management department in the Yellow or the river sand-quarrying department in the Yangtze. In addition to these functional departments, several supporting agencies have been set up since

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the 1950s, including research institutes, design institutes, hydrological bureaus, and so on. Some commissions also have enterprises and engineering companies, such as the Yellow. Following the recent reform, most of these companies are treated as independent entities, but their supporting roles to the commissions remain as before. In the river basin management organizations, particular attention is given to the river basin water resources protection bureau as it is responsible for water resource protection, water pollution prevention, and control of the river basins. The bureau has experienced several changes and underwent reform in 2019. The river basin water resources protection bureau was set up in the mid-1970s by the State Council Environmental Protection Leading Group and MWP (including the Yangtze River Water Resources Protection Bureau in January 1976 and the Yellow River Water Source Office in 1975). In 1983, the Ministry of Urban and Rural Construction and Environmental Protection and MWP jointly issued a document to implement dual leadership of the bureau. In 1984, the bureau was renamed as river basin water resources protection bureau of the Ministry of Urban and Rural Construction and Environmental Protection and MWP; and that of MWR and SEPA in 1991 (after setting up of SEPA in 1988). During the 2018 governmental restructuring, the river basin bureau was renamed the river basin eco-environmental supervision and management bureau and made a residential mission of MEE for seven major river basins. The bureau is mainly responsible for supervision of river basin eco-environmental activities, management, and administration. More importantly, the bureau is jointly led by MEE and MWR, though MEE plays the main role.2 In July 2019, seven river basin (marine area) eco-environmental supervision and management bureaus were reorganized, including those for the Yangtze River Basin, Yellow River Basin, Huai River Basin, Hai River Basin and North China Sea, Pearl River Basin and South China Sea, Songliao River Basin, and Taihu Lake and East China Sea. The key functions of the bureaus include organizing to compile river basin eco-environmental protection plans and water functioning zones; participating to compile ecological protection compensation plans; determining river basin pollutant assimilation capacity and pollutant discharge volume limit; and conducting river basin eco-environmental law enforcement, including mediating major water pollution conflicts, dealing with major emergent water pollution cases, and so on. Additionally, bureaus with marine functions are in charge of organizing to formulate marine eco-environmental protection plans, standards, marine pollutant discharge volume limits, and supervising pollutant discharge to the sea.3 Therefore, the 2018 reforms of river basin water resource management aim to solve the problems of cross-functions, multi-department management, and scattered river basin and marine eco-environmental management and supervision. All of these paint a portrait of RBOs in China. By examining the general scope of their authority and the complexity of the multiple jurisdictions, it becomes clear that the commissions are predominantly planning and coordinating bodies with limited management and operational powers. 2 https://www.gov.cn/zhengce/2018-09/11/content_5320982.htm. 3 https://www.sohu.com/a/330004480_120218768.

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4.5 Experiences from River Basin Management in China China’s political system adopts a national unified approach to river basin management—regardless of the variety of these river basins—that is comparable to practices in several other large federal countries, such as Mexico and the US, and in a number of other countries and regions, such as Spain, France and England and Wales. The authority to manage inter-jurisdictional river basins is derived from the national government and water-related laws in China. At the beginning of the 1950s, China suffered from frequent floods and droughts. In response to this, China developed a water sector based on the planned economy and gradually formed a water management institution focused on water project construction. This institution addressed several important tasks. First, it established WADs at all levels of government to strengthen and promote water construction. Second, it divided water project construction and management functions into departments. WAD was responsible for unified water resource planning, flood control, irrigation, and drainage; the power sector was responsible for hydropower development; the transportation department was responsible for shipping and waterway construction and management; and the urban construction department was responsible for urban water supply and drainage. This institution was reflected in Article 9 of the 1988 Water Law. The hierarchical and departmental arrangement of water resource development and use has promoted the large-scale development of water projects, but it also has inevitably faced challenges, such as neglecting or rejecting the benefits of water resources from river basin management and multi-purpose utilization out of local and departmental interests. This has resulted in interregional and interdepartmental conflicts. In order to overcome these shortcomings, China has set up and strengthened the river basin management institutions of the seven major river basins. As early as November 1949, while establishing the new MWR, the central government stated, “the water use of any river must be planned and managed in an integrated manner to make full use of water resources. The principle of integrated water administration is to centralise water administration of the river.” The responsibilities of several RBOs established in the 1950s reflected the intention to develop an all-function agency to oversee all river basins and all water resource development, construction, and management. However, the practices in the following years reveal that this target was not achieved. In addition to macroscopic reasons related to China’s political and economic changes, it is also important to note that (1) the hierarchal and departmental water resource management system based on administrative regions was formed nationwide. These water agencies have several decades of experience and are supported by local governments. However, RBOs were replaced several times and not fully restored until the end of the 1970s. (2) RBOs have always been the mission residents of MWR with functions limited to flood control and agricultural irrigation and drainage, and they are difficult to manage comprehensively. (3) China’s major rivers have relatively large river basins that are often more than 10 times larger than

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most river basins in the world. There is a large gap in social and economic development between the mountainous areas and the plains, the upper and lower reaches and the left and right banks of the river basins. A river basin often spans several administrative regions, with a large land area and a large population. It is difficult for an RBO to manage each project in each region (even without consideration of the management costs). (4) Water resource development and utilization varies among river basins, as do management and the problems faced. Given these factors, the river basin management model with Chinese characteristics based on planning and coordination centers upon river basin management as an important factor in promoting the integrated development and management of China’s water resources. The RBOs have become an important institution linking jurisdictional management and river basin management. Experiences in the development of river basin managements in China can be divided into the following aspects: (1) Comprehensive planning as the central task of river basin management. Since the 1950s, RBOs have completed comprehensive river basin plans for seven major river basins in China and have revised and supplemented these several times in the 1970s and 1980s. In accordance with the Water Law, the State Council has successively approved comprehensive plans as the basis for the development and utilization of water resources and prevention of water disasters. These plans, which define the tasks, relationships, and measures as well as the layout, scale, main parameters, and basic operation modes of the major comprehensive utilization projects, have become the basis for the national and regional departments to formulate water resource construction plans, feasibility studies, and designs of key water projects. Likewise, these plans outline river basin management regarding flood regulation, water resource allocation, and interprovincial water disputes handling. (2) Flood control and disaster mitigation as the focus of river basin management. Due to the monsoon climate, floods are the most severe natural disasters in China and are concentrated in the seven major river basins. The legislation stipulates that water resource development and use must obey the overall arrangement of the river basin flood-control plan. The RBO is responsible for formulating the river basin flood-control plan and flood regulation plan, reviewing water resource development and carrying out projects for flood-control management. At the same time, the river basin flood-control headquarters and its office are set up within the RBO. (3) RBOs are responsible for the formulation and implementation of river basin water resource allocation after approval of allocation and regulation plans and supervising provincial water abstraction. (4) Managing the state’s water investment plan (mainly limited to flood control, irrigation, and drainage projects within the scope of the MWR). The RBO reviews the design plan and investment scale of the proposed project according to the river basin plan, and it provides investment subsidies depending on the project. At the same time, for those projects involving interprovincial interests,

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(5)

(6)

(7)

(8)

4 River Basin Management

the RBO is directly responsible for design and construction management. After construction, the project is either directly managed by the RBO or delegated to the relevant local department with integrated regulations for flood control or interprovincial water supply. The RBO is generally responsible for the plan, design, and quality supervision of integrated water resource utilization projects within the river basin comprehensive plan, such as the Gezhouba or the Three Gorges Project in Yangtze River. However, the RBO is generally not in charge of the construction and operational management of these projects. The RBO is responsible for managing key river courses and lakes. The management authority and scope in river course and water resource management between the RBO and local agencies were clarified after 1991. All large-scale construction projects within the scope of river basin plan control river sections interprovincial or provincial boundary river sections must be reviewed and approved by RBOs. Water abstraction above the quota within the river section must be approved by RBOs. The RBO directly manages and operates sensitive interprovincial river or lake control projects as well as other water-related activities, such as construction projects and water abstraction. The RBO coordinates and handles interprovincial water disputes.

4.6 Summary This chapter has focused on river basin management in China. The major river basins, their water resources and key issues have been introduced and analyzed. Legal arrangements, key river basin management systems, and river basin organization and development processes have been studied. Ultimately, the characteristics, experiences, and lessons of river basin management in China have been summarized. Under China’s political system, a national unified approach for river basin management has been adopted, regardless of the significant differences between these river basins. Authority for the management of inter-jurisdictional river basins is derived from the national government and water-related laws in China. In the beginning of the 1950s, China developed a water sector based on its planned economy and gradually formed a water management institution focused on water project construction. However, this created challenges, such as neglecting or rejecting the water resource benefits from river basin management and multi-purpose utilization of local and departmental interests. The country established and strengthened the river basin management institutions in the seven major river basins. Now, a river basin management model with Chinese characteristics based on planning and coordination has been formed, making river basin management an important factor in promoting integrated development and management of China’s water resources. The RBO has become an important institution linking jurisdictional management and river basin management.

References

111

References Compiling Group. (1979). China water resources history. Beijing: China Water and Hydropower Press. Liu, C., & Chen, Z. (2001). Assessment for current situations of water resources and analysis of supply-demand trend in China. Beijing: China Water and Power Publisher. MWR. (2017). 2016 Water Resources Bulletin of China MEP. (2017). 2016 China Environmental Bulletin

Chapter 5

Water Resources Allocation and Regulation

Abstract This chapter analyzes the water resources allocation and regulation framework and implementation progress in China. Based on China’s administrative management system and river basin management arrangements, water resource allocation and regulation in China can be divided into three aspects: spatially, water resources allocation and regulation includes the river basin, province, prefecture, county, permit, and individual user levels; temporally, it consists of the annual average and annual/seasonal frameworks; and in terms of definition, it is managed according to abstraction, consumption, and use. In contrast with other countries, China assumes a complicated system for water control due to its vast land area, diverse water resource circumstances, and centralized administrative system. The complex nature of China’s system demands rigorous management techniques and structures. Under this framework, water trades are explored by applying several market mechanisms. Keywords Water resources allocation · Water resources regulation · Annual/seasonal framework · River basin and regional framework · Water abstraction · consumption and use Water resource allocation and regulation are decision-making processes involving the redistribution of water resources in relation to time (when water can be taken), location (where it can be taken from), purpose (what it can be used for), and user (who can take it). Thus, water resources can generally be considered and defined in terms of time, location, quantity, quality, and reliability. The natural spatial–temporal distribution of water resources can be regarded as the first “allocation” of the resource; however, when this natural allocation fails to meet the needs of all water users —in

The chapter is based on Shen D. (2007) Theory and application of water resources allocation. China Water and Power Publisher: Beijing; Shen D. (2009) Water resources allocation in People’s Republic of China. International journal of water resources development, 25(2): 209–225; Martin C. and Shen D. (2009) Urban water management in China. International journal of water resources development, 25(2): 249–268; Shen et al. (2020) Water use control system in China. International journal of water resources development, 36(4): 590–609. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_5

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terms of timing of availability, location, water quality, water quantity, or reliability— there is a need to provide a mechanism for sharing the available water among the competing uses and users. As such, water resource allocation and regulation are a process of changing the natural or status quo distribution of water resources to balance economic and social requirements for water with other interests, including those of the environment (Shen 2007). China is, politically, a centralized country with five levels of administration— including central, provincial, prefectural, county, and township governments—and each level of these is answerable to the superior levels of government. China’s institutional structure for water resource management mirrors these arrangements, with local water resources departments and bureaus answering to higher levels within the water resources management hierarchy all the way up to the MWR. MWR has overall responsibility for China’s water resource management policy as the WAD of the State Council. Separate river basin management commissions exist for China’s major river basins, which are responsible for management of water resources at the major river basin level, as discussed in Chap. 4. Under the 2002 Water Law, the RBO is responsible for sharing water between the provinces in which the basin is located. Likewise, within provinces, the provincial water resources department is responsible for preparing water resource allocation plans to share water among different prefectures, and so on down the administrative ladder (Article 45, 2016 Water Law). The Water Law also establishes a water abstraction permit system to regulate the abstraction of water by individuals or entities (Article 32, 1988 Water Law; Article 48, 2002 and 2016 Water Law). Further regulation of water use then occurs within public water supply systems (e.g., irrigation districts) to manage the use of water by individual users. As such, water resources in China are allocated and regulated on three distinct but connected levels (Shen 2009): • river basin and regional water resource allocation and regulation, by which water within river basins is allotted to administrative regions and sub-regions; • allocation among water abstractors, which occurs through water abstraction permits allocating a region’s share of the available water resources among different abstractors (i.e., those who take water directly from watercourses or aquifers); and • allocation of water to water users (such as those within urban water supply systems or farmers within an irrigation district) where water is allocated among those supplied from the public supply system.

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5.1 Water Resource Allocation in China 5.1.1 River Basin and Regional Water Resources Allocation The 2002 Water Law provides the overall framework for water resource allocation. The macro-allocation of long-term access to water resources in China is through “long- and medium-term water supply and demand planning,” as discussed in Sect. 2.2.1. As their names suggest, these plans broadly identify demand for water over the longer term, such as 20 years in the future, as well as sources to meet those requirements. Water resources are allocated in the shorter term via water resource allocation plans. These plans are prepared at the river basin level for the purpose of regulating the runoff and storage of water, and they are based on the relevant river basin plans and the long- and medium-term water supply and demand plans (Article 45, 2002 and 2016 Water Law). For trans-provincial river basins, the water resource allocation plans, as well as drought contingency plans, are formulated by the applicable river basin management commission together with relevant local (i.e., provincial) governments. The plans are then submitted to the State Council or its authorized department (normally MWR) for approval (Article 45, 2002 and 2016 Water Law). Other trans-regional water resource allocation plans and drought contingency plans are formulated by the WADs of the governments at the highest level necessary to have jurisdiction across the whole basin (e.g., for trans-prefecture basins, they are prepared by the provincial department), together with relevant local governments. Water resource allocation plans are the mechanism for sharing water resources between different administrative regions within a river basin, thus identifying the share allotted to each region of the common resource available to them; this is the river basin and regional water resources allocation framework defined in China’s legislation. Drought contingency plans typically operate in place of the water resource allocation plan during dry periods, with the trigger for their operation linked to a threshold defined in the plan (Article 45, 2002 and 2016 Water Law). As such, the drought contingency plan is, in effect, a type of water resource allocation plan. Based on the water resources allocation framework in the Water Law, the 2007 Interim Measures for Water Resources Allocation details the implementation of water resources allocation at the river basin and regional levels: • Water resources allocation is to allocate the total amount of water resource availability or the amount of water that can be allocated to the administrative regions level by level, and it determines the share of water consumption or abstraction for domestic and productive uses of the administrative regions (Article 2). – The total amount of water resource availability includes the amount of surface water resource availability and the amount of groundwater resources that can be exploited, minus the amount of duplication. The availability of surface water

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resources refers to the maximum amount of water available for out-of-stream consumption in the local surface water resources as per economically reasonable and technically feasible measures, based on the premise of protecting the ecology, environment, and sustainable use of water resources. The exploitable amount of groundwater resources refers to the sustainable yield of water in a foreseeable period of time, which is obtained from underground aquifers by means of wells and economically reasonable and technically feasible measures that do not cause ecological and environmental degradation. – In river basins and administrative regions with a high degree of water resource development or plentiful water resources, river network regions with complex water flow, or other river basins and administrative regions not included in the total amount of water resource availability, the amount of water that can be allocated refers to the water amount allotted by comprehensively considering domestic, productive, ecological, and environmental water uses, according to the principles of convenient management, operation, water saving and protection, and supply and demand coordination. • Water resource allocation shall follow the principles of fairness and equality and fully consider water resource circumstances in the river basin and administrative regions, the history and current status of water supply and use, future water supply capacity and water demand, and the requirements for water-saving society construction. Additionally, it must properly handle water use relationships between upstream and downstream and left and right banks; coordinate surface water and groundwater and instream and out-of-stream use; and arrange domestic, productive, and ecological and environmental water use (Article 5). • Water resource allocation shall be based on a water resource comprehensive plan (Article 6). • In order to meet water demand for future development and the national major development strategy, according to the water resource circumstances of the river basin or administrative region, the water resource allocation plan authority may negotiate with the governments of the relevant administrative regions to reserve a certain amount of water resources. The management authority for reserved water volume is determined by the water resource allocation plan approval agency. Before being allocated, the corresponding volume of the reserved water resources can be reasonably assigned to the annual water resources allocation plan and the regulation plan (Article 8). • The water resource allocation plan includes the following main points (Article 10): – The total amount of water resource availability or the amount of water that can be allocated in a river basin or administrative region. – The share of water resources in each administrative region and its corresponding river sections, reservoirs, lakes, and groundwater exploitation areas. – The annual water use adjustment and regulation principles of each administrative region at different inflow frequencies or reliabilities.

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– The reserved amount of water resources and the corresponding river sections, reservoirs, lakes, and groundwater exploitation areas. – The boundary section flow, runoff, lake water level, water quality for crossboundary rivers or lakes, and control indicators including groundwater level and water quality for cross-boundary aquifers. Together, these plans provide a comprehensive basis for allocating water across the river basin and regions, with water resource allocation plans applied under normal circumstances and drought contingency plans during droughts. The details of the way water resource allocation plans define entitlements to water vary significantly across China. Since 1980s, China has launched a river basin water resource allocation plan. Specifically, the Yellow River Water Resources Allocation Plan was approved by the State Council in 1987, followed by plans for the Hei River in 1997, the Tarim River in 2003, the Shiyang River in 2005, the Yongding River in 2007, and the Daling River in 2009. In water-plentiful regions, the Jinjiang River was approved for the allocation plan during the 1996 dry season. Jiangxi Province completed allocation plans for five major rivers in 2008. In 2018, MWR approved a river basin water resource allocation plan for eleven trans-province rivers.1 By July 2018, 59 rivers were involved in trans-province water resource allocation plans, and 33 rivers had been approved.2 In October 2019, 41 rivers had been approved.3 These water resource allocation plans include the Huai River and the Tai Lake, the plans of which were approved jointly by the National Development and Reform Commission and MWR in July 20174 and May 2018,5 respectively. The Huai River Water Resources Allocation Plan The Huai River flows through the Hubei, Henan, Anhui, and Jiangsu Provinces. The total length of the main stream is 1,000 km; the catchment area is about 190,000 km2 ; and the average annual water resources are 58.35 billion m3 , of which surface water resources are 45.24 billion m3 . The river basin faces water shortages, uneven temporal and spatial distribution, and frequent water disasters. Given the rapid socio-economic development of the area, water use has increased substantially, and the disparity between water supply and demand is prominent, with groundwater severely over-exploited in certain areas. In order to rationally allocate water resources, maintain a healthy ecological environment, promote sustainable use of water resources, and guarantee the sustainable economic and social development of the basin, this plan is formulated in accordance with the Water Law of the People’s Republic of China.

1 https://www.mwr.gov.cn/xw/slyw/201801/t20180129_1021125.html. 2 https://www.chinanews.com/gn/2018/07-09/8560748.shtml. 3 https://szy.mwr.gov.cn/gzdt/yw/201910/t20191012_1365056.html. 4 www.gov.cn/xinwen/2017-06/27/.../files/a999a98d1bae4bd390dc94fe82a95dfc.doc. 5 https://www.ndrc.gov.cn/zcfb/zcfbtz/201805/t20180518_886625.html.

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1.

Allocation principles (1) Fair and equitable, scientific and reasonable. (2) Priority on water-saving and optimal allocation. (3) Protect aquatic environment and sustainable use of water resources. (4) Respect the status quo and make overall plans. (5) Democratic consultation and administrative decision-making.

2.

Allocation opinions In 2030, the out-of-stream allocation for surface water in a normal year (P = 50%) of the Huai River Basin is 149 million m3 for the Hubei Province, 6.31 billion m3 for Henan Province, 9.81 billion m3 for Anhui Province, and 6.81 billion m3 for Jiangsu Province. Under different inflow conditions, the out-of-stream allocation plan in 2030 for the Huai River Basin is shown in Table 5.1.

Table 5.1 Water resources allocation plan of the Huai River Basin in 2030 under different inflow frequencies Allocation volume (billion m3 )

Provinces

Inflow frequency (%)

Hubei

50

0.149

75

0.165

90

0.152

Henan

Anhui

95

0.127

Annual average

0.150

50

6.31

75

7.96

90

3.79

95

3.16

Annual average

6.55

50

9.81

75

12.15

90

7.49

95

6.24

Annual average Jiangsu

10.06

50

6.81

75

8.43

90

2.44

95

2.03

Annual average

6.84

Source Huai River Water Resources Commission. Permission granted by Huai River Water Resources Commission on its website subject to proper citation.

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3. Control indicators of key sections 3.1 Discharge requirements The Wangjiaba, Bengbu, and Xiaoliuxiang are defined as the control sections for the river basin’s water resource allocation. The control indicators are in Table 5.2. Table 5.2 The discharge volume control indicators of key sections in 2030 of Huai River Natural runoff (billion m3 )

Discharge (billion m3 )

Section

Inflow frequency

Wangjiaba

50%

9.90

6.69

75%

5.83

2.76

95%

2.70

1.01

Bengbu

Xiaoliuxiang

Annual average

10.18

7.05

50%

28.66

18.29

75%

19.24

9.78

95%

10.94

4.69

Annual average

30.49

19.76

50%

30.60

18.90

75%

18.92

10.18

95%

9.06

4.88

32.78

20.58

Annual average

Source Huai River Water Resources Commission Permission granted by Huai River Water Resources Commission on its website subject to proper citation.

The outflow from Henan Province is verified by the monitored runoff at the Wangjianba Hydrological Station. The outflow from Anhui Province is verified via the monitored runoff at the Xiaoliuxiang Hydrological Station. 3.2 The minimum discharge control indicator The Wangjiaba, Bengbu, Xiaoliuxiang, and the Hongze Lake are defined as the control sections for minimum discharge. The minimum instream discharge control indicators are in Table 5.3. Table 5.3 Minimum instream discharge control indicators for key sections at Huai River Section

Minimum discharge(m3 /s)

Wangjiaba

16.14

Water table (m) –

Bengbu

48.35

–

Xiaoliuxiang

48.35

–

Hongze Lake

–

11.11

Source Huai River Water Resources Commission Permission granted by Huai River Water Resources Commission on its website subject to proper citation.

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5.1.2 Allocation of Regional Supply to Water Abstractors The allocation of water resources by a region to water abstractors (i.e., individuals or legal entities) is managed through a water abstraction permit system. Article 7 of the 2002 Water Law requires that the state implements a water abstraction permit system, and Article 48 requires that units or individuals that take water directly from rivers, lakes, or underground aquifers must apply for a water abstraction permit. Exemptions from this requirement exist, such as for members taking water from rural collective ponds, and reservoirs; taking a small quantity of water for domestic purposes and for watering livestock; and temporary emergency taking for safe production of underground engineering, eliminating threats to public security and interests, agricultural drought resistance or eco-environmental protection (Article 4, Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection). The regulation controls all water abstraction facilities, including sluices, dams, canals, water pumps, water wells, and hydropower stations (Article 2, Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection). The regulation develops the linkage between the permit system and river basin and regional water resources allocation. Article 15 stipulates that the approved water resource allocation plan or signed agreement is the basis for defining river basin or regional water abstraction caps. In addition to considering the total volume available (as defined by the relevant plans), permit approval is mainly weighed against water use quotas, which are set by the provincial water department in conjunction with the quality supervision and inspection administrative departments (Article 16, Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection). These quotas recognize standard usage levels for certain industrial products/processes or agricultural crops or services (e.g., for a power plant of a given size, or volume per room for a four-star hotel). The technical support document for water abstraction applications consists of a water resources justification report, as described in Sect. 2.2.5 (Article 11, Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection). The conditions on an abstraction permit include the name of the abstractor; abstraction location, instrument, and volume; purpose; water source type; duration (between 5 and 10 years); and return flow site, instrument, volume, and water quality requested (Article 24). In addition to the regulation, MWR and local water departments issue detailed technical guidelines governing the application and assessment of abstraction permits, such as the 2008 Water Abstraction Management Methods by MWR. The regulation also prohibits the granting of abstraction permits under certain circumstances. Such circumstances include where abstraction would increase water abstraction volumes in an area above the cap set by the water resources allocation plan, where significant harm might result for water function zones, groundwater abstraction where the public water supply network meets its water needs, or where

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the abstraction would cause significant harm to a third party or social public interests (Article 20).

5.1.3 Water Resource Allocation in Public Water Supply System For the majority of water usage, the entities that hold the water abstraction permit supply the water they take to individual water users rather than using the water themselves; this includes public water supply companies (in urban regions) and the organizations responsible for managing and operating irrigation districts. An allocation process typically exists for assigning water to users within these systems. In irrigation districts in China (which are often huge areas encompassing thousands or tens of thousands of individual “farms”), water is typically allocated based on irrigation scheduling systems that were established during the design of the district. Generally, the scheduling system will be formulated according to the reliability of the supply, canal system efficiency, the irrigable land, crop patterns, and crop requirements. In some of the old irrigation districts, water scheduling and sharing arrangements have been in place for hundreds or even thousands of years. In most instances, the entitlements of individuals within the system are generally well understood, although they are often undocumented. Urban water supply systems are generally more complicated. In addition to regulation via the water abstraction permit, a commercial contracting system is used for managing water supply and use. The rights and responsibilities of the suppliers and users in relation to water resource allocation are governed both by water supply and use contracts between these parties and by the water supply plans. These plans and contracts cover matters such as the price paid for water services, the rate and pressure of water supply, metering obligations and standards for meters, and the quality of water supplied. For non-residential users, the contract will also include a maximum volume. These mechanisms are required and managed under the 1994 Urban Water Supply Regulation, 1989 Urban Planning Law, 1999 Contract Law, 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection, and 2007 Urban Water Supply Quality Management Provisions. As part of the application process for a water abstraction permit, a public water supply organization is required to identify the purpose of use, the quantity required, and the monthly use pattern. This information broadly identifies how the volume abstracted (and authorized under the permit) will be allocated within the public water supply system (Martin and Shen 2009).

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5.2 Water Resource Regulation in China The framework described in Sect. 5.1 outlines the mechanism for allotting longterm allocations of water resources, typically based on average annual volumes. However, the water availability and use in a specific year or season shall be adjusted to the stochastic characteristics of water resources with precipitation and inflow as they change from year to year or season to season. Then, the annual/seasonal water use plans at each allocation level shall be formulated and implemented accordingly. In China, this is done via a series of regulation plans, abstraction plans, and water use plans, which together regulate actual water use (Shen 2020).

5.2.1 River Basin and Regional Water Resource Regulation At the river basin or regional level, an annual water resources regulation plan is prepared based on the relevant water resources allocation plans and annual inflow forecasts. Article 46 of the 2002 Water Law defines that the WADs of the local governments above the county levels or RBO shall—according to the approved water allocation plan and the annual inflow forecast—formulate an annual water resources allocation plan and regulation plan and implement integrated water resource regulation. Further, Article 12 of the 2007 Interim Measures for Water Resources Allocation details that the annual water resources allocation plan and regulation plan shall be formulated, according to water use demand and in combination with water project operation, to define water use time and volume and implement annual water use caps and integrated water resource regulation. As for implementation at the river basin level, RBO shall consult WADs of relevant provinces and other relevant agencies according to the following year’s annual water resources allocation plan, annual inflow forecast, and reservoir storage. Based on the principles of total volume control, increases in water per year and decreases in water per year and the need to compensate for less water with more water, the RBO must formulate an annual water resources regulation plan or a contingency regulation plan for the dry season for important river systems in the river basin by coordinating surface water and groundwater (Article 40, 2008 Water Abstraction Management Methods). At the regional level, local water resources departments must formulate an annual water resources regulation plan or a contingency regulation plan for the dry season for the region, in accordance with the annual water resources allocation plan and annual water resources regulation plan issued by the water resources department of the upper level government or RBO, and they must report to the water resources department of the upper level government or RBO for recording (Article 40, Water Abstraction Management Methods).

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5.2.2 Annual Water Abstraction Plan At the abstractor level, the authorized water abstraction volume for a permit holder in a given year (or in some cases month) is determined by formulating and implementing annual water abstraction plans according to the forecasted inflow, actual water use, and sectoral water use quotas. The annual water abstraction plan is the basis of the annual water abstraction cap. The annual water abstraction plan for the key state rivers and lakes is formulated by RBOs with relevant provincial water resources departments. The annual abstraction plan above the county level shall be formulated by WAD of the local governments with reference to the annual water resources allocation plan and annual water abstraction plan issued by the water resources department of the upper level government or RBO (Article 39, 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection). Before 31 December each year, water abstractors must submit summary reports of the year and proposals for the following year to the permit approval agency. The hydropower project shall submit the power generation plan for the following year, and the public water supply project shall attach the following year’s water demand plan for key users in the supply scope (Article 35, 2008 Water Abstraction Management Methods). According to the following year’s annual water abstraction plan for the region and water abstraction proposal by water abstractor, the permit approval agency will issue the following year’s annual water abstraction plan for the water abstraction unit before 31 January, as per the principles of comprehensive coordination and balance and with reserve. The approved annual abstraction volume must not exceed the volume on the permit. The abstractor shall follow the plan as well as the return flow. If the water abstractor needs to change the annual plan, such as by enlarging production, it must be agreed to by the approval agency (Article 39, 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection; Article 36, 38, and 39, 2008 Water Abstraction Management Methods). Additionally, the approval agency will limit the annual abstraction volume if (1) water resources cannot meet the normal supply to the regions due to natural reasons; (2) there are severe impacts on functions and the environment in the water function zone due to water abstraction and return flow; (3) there is a geological disaster, such as land subsistence, from groundwater overdraft and exploitation; and (4) there are other special reasons that limit abstraction. In cases of severe drought, the emergency control on abstraction can be applied.

5.2.3 Annual/Seasonal Water Use Plan Within irrigation districts, an irrigation water use plan is developed to manage seasonal water use. The “Code of Practice of Technical Management of Irrigation

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and Drainage Engineering” requires that the rotational water use plans for irrigation districts be formulated yearly, while a canal water use plan and a “grassroots” or field-level water use plan must be formulated quarterly (or according to cropgrowing periods). Rotational water use plans are developed according to the specific situation, for example, in relation to soil moisture, crop type, or weather conditions. Within urban water supply systems, because of the requirements for high reliability and security, the annual water abstraction plan for an abstraction permit will normally set an annual volume that equals the volume specified in the permit. This allows the supply company to fully meet the urban water requirements in a normal year. During drought periods special contingency rules may apply that provide for water rationing. Figure 5.1 summarizes the water resources allocation and regulation framework in China. It shows the top-down hierarchy in place, reflecting allocations made at the river basin level, down through provinces and prefectures and ultimately allocations at the user level. The left column reflects the long-term allocation of water resources, while the right shows the mechanism for allocating and regulating actual water on an annual or seasonal basis. The diagram thus shows both the spatial and temporal aspects of water resource allocation. In addition to the framework, various definitions for water volume—including abstraction, consumption, and use—are used in water resources allocation for different management purposes and regions in China. The abstraction volume is applied at the abstraction level and for river basins/regions with abundant water resources, such as those found in Southern China. Abstraction has a legal definition in the permit system. In the river basins and regions with abundant water resources, consumption will not have a significant impact on the other users, and the management focus is on the quality of the return flow, rather than its quantity. Consumption Water resources allocation

Annual/seasonal water resources regulation

River basin water resources

River basin annual water resources

allocation plan

regulation plan

Regional water resources allocation

Regional annual water resources regulation

plan (province, prefecture, county)

plan (province, prefecture, county)

Water abstraction permit

Annual water abstraction plan

Water supply plan in urban

Irrigation water use plan

Annual/seasonal irrigation water use plan

Water supply and use

Water use association or

contract between company

Annual/seasonal water usage Water volume in the contract

farmer water usage

water supply company

Annual water supply plan for water supply company

and user

Fig. 5.1 China’s water resources allocation and regulation framework Source Shen D and Sun X (2010). Permission granted by Dajun Shen

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volume is widely applied in Northern China because of a shortage of water, including in the Yellow River Basin, the Hei River Basin, the Tarim River Basin, and the Shiyang River Basin. In these river basins, a portion of water used downstream comes from the return flow of the upstream users. The use volume is applied at the user level, including for industrial enterprises and farmers. Such use occurs at the end of the supply and allocation system. To some extent, it is costly and unnecessary to manage in terms of abstraction or consumption.

5.3 Water Trade Within the China’s water resources allocation framework, water resources can be traded. Article 27 of the 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection provides that where a permit holder reduces water use through, for example, “adjustments to production or industrial structure, innovation in technologies or the promotion of water-saving measures,” the holder can transfer the saved water and receive compensation. The requirements of this kind of transfer are as follows: (1) The sale party must be the entity applying for the water permit and paying the water resource fee according to law, and they must obtain the water abstraction rights. (2) The transferred water resources must be water resources saved by adjusting product and industrial structure, reforming processes, and saving water. Such measures should comply with relevant national policies and standards. (3) The transfer must occur within the validity period of the water abstraction permit and the water withdrawal limit. The water abstractor will have the abstraction rights only to the water resources within the validity period of the water permit and the water withdrawal limit. (4) The trade, as well as the water abstraction rights change and water abstraction permit change, shall be approved by the original water abstraction approval authority. Due to changes in abstraction permit holders, separation volumes, and water withdrawal methods, the trade should be approved by the original water abstraction approval agency. (5) It can be transferred with payment or compensation. The payment or compensation for transferred water should reflect the value of water resources and encourage parties to save water. The payment or compensation is a voluntary transaction between two parties and not the water resource fee. The buyer must pay the water resource fee. In 2016, extensive trades were encouraged. The 2016 Interim Methods for Water Rights Trade Management by MWR clarifies that water rights trade refers to behaviors processing water use rights transfer between regions, river basins, upstream and downstream, sectors and users by market mechanisms and is based on rationally clarifying and allocating water resources use rights (Article 2). Therefore, according

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to the water resources allocation framework, water rights trading mainly takes the following forms (Article 3): (1) Regional water rights trading: local governments or authorized agencies transfer surplus water volume in total water use control volume, river basin water resources allocation plan in the river basin, or across basin regions with water delivery conditions. (2) Water abstraction rights trading: a unit or individual who has obtained the water abstraction rights (including water abstraction rights holders from the industrial, agricultural, and service industries, with the exception of urban public water supply enterprises) by saving water through adjusting products and industrial structures, improving technology and processes, or adopting water-saving instruments transfers the corresponding water abstraction rights to other eligible units or individuals within the valid period of the water abstraction permit and water abstraction volume. (3) Water rights trading between irrigation water users: water rights are transferred between irrigation water users or water use organizations with clear water rights. These types of transfers also happened before the legislation. The agreement reached in 2000 between Dongyang and Yiwu Counties is widely regarded as China’s first example of a regional water transfer. The counties are both located in the Jinhua Prefecture in Zhejiang Province in China’s wet southeast. In December 2000, the regional governments of Dongyang and Yiwu signed a contract whereby Dongyang agreed to supply Yiwu with 50 million m3 of water per year from the Hengjin Reservoir in Dongyang. The contract provided for “the permanent transfer of the water use right” for 50 million m3 in return for a lump sum payment to Dongyang of 200 million RMB. Dongyang retained ownership of the reservoir as well as operational and maintenance responsibilities, fixing an operation and management fee of 0.1 RMB per m3 payable by Yiwu and calculated based on the actual volume of water supplied each year. Several other similar regional transfers, via contract, have also occurred in Zhejiang Province. Cixi County has signed separate agreements with both Yuyao and Shaoxing Counties (Jiang 2018). The Liyuan Irrigation District in the Hei River Basin in Gansu Province in Northwest China is a typical example of water trade among users in the irrigation district. Within the district, water certificates are issued to individual households showing the allocation assigned to the household and the conditions for use. Allocations are assigned annually using a water ticket system. Individual farmers purchase water tickets from the irrigation district management agency (or the local WUA) for each irrigation cycle. The volume they can purchase is limited by the volume on their water certificate and the annual volume available to the district that year. The water tickets are then submitted to the local irrigation district officials prior to water being delivered, via the channel system, to their farm. Water tickets may be traded freely and easily as they are not user- or location-specific. Farmers can sell their water tickets (but not water certificates) to other farmers in the district, and no administrative approval is required. In practice, there have been few instances of water

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ticket trading, and anecdotal evidence suggests that water tickets are sold between neighbors to adjust for where one has over-ordered. Another more market-oriented water trade practice has been developed in the Shiyang River Basin, Gansu Province. An exchange-based online water-trading platform was developed in an irrigation district in the basin and includes the functions of water accounting, trading application, application approval or rejection, pooled exchange, tracking the payment and updated water account, and publishing historical trading information. Between 2008 and 2014, the platform reached 349 trades with a total volume of more than 29 million m3 between farmers.

5.4 Summary This chapter has analyzed the water resources allocation and regulation framework and implementation progress in China, including the case study of the Huai River water resource allocation. The chapter concludes with an examination of water trading, which is a reallocation of water resources. Based on China’s administrative management system and river basin management arrangements, water resource allocation and regulation in China can be divided into three aspects: spatially, water resources allocation and regulation includes the river basin, province, prefecture, county, permit, and individual user levels; temporally, it consists of the annual average and annual/seasonal frameworks; and in terms of definition, it is managed according to abstraction, consumption, and use. In contrast with other countries, China assumes a complicated system for water control due to its vast land area, diverse water resource circumstances and centralized administrative system. The complex nature of China’s system demands rigorous management techniques and structures. Under this framework, water trades are explored by applying several market mechanisms.

References Jiang, M. (2018). Towards tradable water rights: Water law and policy reform in China. Springer. Martin, C., & Shen, D. (2009). Urban water management in China. International Journal of Water Resources Development, 25(2), 249–268. Shen, D. (2007). Theory and application of water resources allocation. Beijing: China Water and Power Publisher. Shen, D. (2009). Water resources allocation in People’s Republic of China. International Journal of Water Resources Development, 25(2), 209–225. Shen, D., & Sun, X. (2010). Water resources allocation and regulation: China’s practices and Australian experiences. Beijing: China Water and Power Publisher Shen, D., et al. (2020). Water use control system in China. International Journal of Water Resources Development, 36(4), 590–609.

Chapter 6

Water Rights System

Abstract This chapter deals with the legal aspects of the water rights system in China. It introduces the water rights system and its development, its challenges, and suggestions to improve the system. First, the development of the water rights system in China is briefly outlined. Then, the legal framework for this system, which consists of the Constitution of the PRC, the General Principles of Civil Law, the Property Rights Law, and the Water Law, is analyzed. The legally defined water rights are examined, including ownership rights, collective use rights, regional water rights, water abstraction rights, and water rights certificates and water tickets. Finally, current challenges are identified and suggestions to develop and improve the water rights system are proposed. Keywords Water rights · Ownership rights · Collective use rights · Regional water rights · Water abstraction rights · Water rights certificates and water tickets Broadly, water rights refer to formal or legally defined rights, such as water abstraction rights granted by permit in China, or rights concerning the specified volume for various water resources allocation plans, agreements, and contracts. This category also includes informal rights, such as traditional water access rights, rights that do not require legal grant or approval, and so on. Furthermore, the right to water does not only refer to the rights stipulated by law and formally designated as “rights,” such as the ownership and water abstraction rights enshrined in the Water Law of China, but it also includes the rights stipulated by law but not officially named as “rights,” such as the small amount of water granted to humans and livestock in rural areas. In general, water rights include three forms of entitlement. First, natural water rights considered necessary to sustain life, such as the right to a limited amount of domestic water use for humans and livestock. Second, traditional water rights that are customarily possessed (including those that are later formally recognized by law), such as riparian rights or certain rights related to traditional and folk customs. Third, legal water rights that are specifically stipulated by legislation. This category The chapter is based on Shen et al. (2020) Water use control system in China. International journal of water resources development, 36(4): 590–609; and WET (2006) Water entitlements and trading project (WET Phase I) final report. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_6

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includes most modern water rights systems. Nevertheless, when influenced by water resources development and use, as well as other socio-economic factors, these three types of water rights can be altered. Increasing water shortages will typically transform traditional and even natural water rights into legal water rights protected by legislation.

6.1 The Development of the Water Rights System Framework in China After China’s adoption of its opening policy in 1978, the rapid social and economic development in the 1980s changed the role of the water sector. This sector was required to supply water for urban and industrial development, not only agriculture (Qian 1984, 1985). In the early 1980s, urban areas in the NCP suffered critical water shortages, induced by rapid economic development and urbanization combined with poor urban water supply infrastructure. To address the out-of-supply capacity of water resources in the Yellow River Basin, the Office of the State Council issued an allocation plan in September 1987 (Office of the State Council 1987). The 1987 Yellow River Water Resources Allocation Plan is historically significant due to its long-term impacts on modern water rights development in China. It is regarded as the first major water rights allocation plan at the river basin level in the national water rights framework and has been a model for river basin water resources allocation and regulation since 1998. However, this plan was not implemented immediately after issuance, which partly contributed to the dry-up of the mainstream of the Yellow River in 1990s. The first Water Law of 1988 identified water use priority in terms of meeting domestic water demand as a priority and coordinating the requirements of agriculture, industry, and navigation (Article 14). It also stipulated water allocation principles and procedures (Article 31). Besides its definition of state water ownership rights (Article 3), the key contribution of the 1988 Water Law was the introduction of the water abstraction permit system (Article 32). This system has subsequently been transformed into the individual water abstraction rights in the national water rights framework. The 1993 Implementation Methods for Water Abstraction Permit System detailed the scope, requirements, principles, management organizations, approval, and procedures for the implementation of the system. The methods required water abstraction permits to abide by the approved water resources allocation plan or agreement (Article 6). The permit system was quickly promoted nationwide, with most provinces issuing local implementation rules. By 1996, the implementation covered about 90% of prefectures and over 95% of counties (MWR 1997).

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Before 1998, there was no concept of water rights in China. However, some initiatives, including the water abstraction permit system and the water resources allocation plan in the Yellow River Basin, aimed to improve water resources management, developing the components of China’s future water rights framework. The longest dry-up period since the 1972 case of the Yellow River mainstream occurred in 1997. This phenomenon was more serious for the inland rivers in Northwest China, resulting in severe ecological problems. Under these circumstances in 1999, the MWR proposed shifting from traditional “engineering-oriented water resources development” toward “resources-oriented water resources development” (Wang 1999), an approach supported by water rights, water markets, and water pricing systems. Wang’s series of lectures laid the foundation for water rights development in China (Wang 2001a, b; 2004). The resources-oriented development strategy and water rights were incorporated into the revised 2002 Water Law, which further elaborated the water rights system (Article 45, 46, 47, 48). In the Yellow River Basin in 1998, the river basin water resources regulation was implemented according to the 1987 allocation plan to address the river’s dryup. The formulation and implementation of the allocation and regulation plan were written into the 2002 Water Law. The methodology, including the institutional setting, formulation, and implementation of the allocation and regulation plans, was imitated and applied in other river basins in northern China, such as the Heihe River in 2000, the Tarim River in 2002, and the Shiyang River in 2007. In the agricultural sector, water certificates were granted as a form of permanent water rights, while water tickets were issued as temporary rights linked to actual water use in Zhangye Prefecture in the Hei River Basin in Gansu Province. This model was also copied by other irrigation districts in northern China, such as Shiyang River Basin and Inner Mongolia (Calow et al. 2009). In 2005, the MWR promulgated the Water Rights System Construction Framework to clarify the basic contents of the water rights system and the Several Opinions on Water Rights Transfer to improve transfer activities. The framework stipulated that the water rights system is a series of systems to clarify, allocate, regulate, protect, and practice water rights; to clarify rules of rights, responsibility, and interests between governments, governments and users, and users; and to manage and secure water rights in terms of legislation, institutions, and mechanisms. The water rights system consisted of three components: the water resources ownership system, water resources use rights system, and water rights transfer system. The water resources management systems were further grouped into three rights systems. Thus, the document aimed to develop the connections between water resources management systems and the water rights system. In 2006, the Water Entitlement and Trading Project, which was launched jointly by the MWR in China and the Australian Department of Agriculture, Fisheries, and Forests, developed a national water rights framework (WET 2006, 2007; Shen and Speed 2009; Cosier and Shen 2009). This framework determines the water rights components for China and develops linkages and relationships between these components to ensure the integrity of the water rights system and to provide a clear pathway

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to developing a water rights system nationwide. The framework has guided water resources management and water rights in China since its establishment, including the strictest water resources management strategy in 2009 and water rights reform in 2014. The lack of control over development and discharge and the limited implementation of management systems weakened by pursuing economic development were two critical problems in water resources management. To solve these problems, the strictest water resources management strategy was developed in 2009 (Chen 2009), reiterated in the 2011 State No. 1 Document (State Council 2011), detailed in 2012 (State Council 2012), and implemented through a series of documents (Office of the State Council 2013). The core of the strategy is designed to define and strictly enforce a set of three “redlines”: a water resources development redline to control total water use, a water function zone pollutant-assimilation redline to control total pollutant discharge into water bodies, and a water use efficiency redline to promote water productivity and reduce water waste (Chen 2009) (see Chap. 12). In theory, the development redline is the water rights system. Through the implementation of the strictest water resources management strategy, the water rights system and its framework have been officially developed and widely promoted. However, some issues have arisen, such as the technical relationship between control indicators, redlines, and water rights, particularly when such rights are not clearly defined. Additionally, the strategy focuses on redline realization assessment rather than water rights system development, especially when the main objective of this assessment is to strengthen government regulation. In some ways, the approach replaces the water resources management system with a water resources manager system. In 2014, following the national requirement to deepen reform through marketdominant resources allocation and enhancing government effectiveness (18th Central Committee of CPC 2013), the MWR issued its Guidance to Deepen Water Sector Reform. The guidance was intended to improve the water rights system, develop the water resources asset property rights system, and foster the water market. To improve the water rights allocation system, the guidance demanded the clarification and registration of rights; the completion of regional water use control indicators in provinces; the acceleration of river basin water resources allocation; the improvement of water abstraction permit management and clarification of water use rights for abstractors; and the registration of village-collective water use rights. This document also encouraged water trading between regions and users, exploring various water rights transfer models, and gradually developing national, river basin, and regional trading platforms. Additionally, a water use purpose control system was introduced to safeguard basic water demands, including public interests defined in terms of domestic and ecological use (MWR 2014). In 2015, a water resources asset management policy was launched to alleviate the conflict of interest generated by the State Council being simultaneously the manager and owner of state water resources. This reform was designed to separate ownership and managership in terms of function and organization (State Council 2015) (see Chap. 13).

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In June 2016, the Temporal Methods for Water Rights Trade Management was issued by the MWR (2016). This document defined the management arrangements for trading regional water rights, water abstraction rights, and water use rights in irrigation districts. In the same month, the China Water Exchange was established by the MWR as the national government-supported water rights trading platform. However, this state intervention in the water trade will raise concerns about the market mechanism. In sum, after more than 30 years of progress, China has developed a water rights system framework, including its implementation procedure and technical requirements. This system has been established through a process of piloting, piece-bypiece development, and transitioning from theory exploration to full implementation. However, despite this relatively lengthy process, some fundamental issues have not been fully addressed, such as the role of government, the effective protection of water rights, and the introduction of market mechanisms.

6.2 Water Rights Legal Framework 6.2.1 Constitution The Constitution of the PRC defines the ownership of water resources. Article 9 stipulates that “All natural resources, including mineral resources, water flows, forests, mountains, grassland, unreclaimed land, beaches etc., are owned by the state, that is, by the whole people; with the exception of the forests, mountains, grasslands, unreclaimed land and beaches that are owned by the collectives in accordance with the legislations.” This article concerns the ownership of natural resources in China, which are the most important production material and the economic lifeline of the country, providing the material basis to guarantee sustainable, stable, and healthy socioeconomic development. Therefore, such resources must be owned by the state, that is, the whole people. In this context, state ownership refers to the state’s rights to own, use, benefit from, and dispose of natural resources. According to the Constitution, the NPC has formulated and issued natural resources laws to stipulate water resources ownership rights, such as the Water Law. Another key issue is the definition of “water flow.” The Constitution adopts a definition from the Modern Chinese Dictionary according to which water flow is the general name of rivers. Based on this definition, the Constitution states that only natural resources reaching a certain size, rather than a small pond, are owned by the state. Under the principle of state ownership, natural resources could be owned by the collective only if defined by law. Among such resources, water flow can only be

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owned by the state. Some laws, including the Water Law, stipulate that state-owned natural resources could be used by economic collectives.1

6.2.2 General Principles of Civil Law Article 81 of the 2009 General Principles of Civil Law stipulates that stateowned natural resources, including forests, mountains, grasslands, unreclaimed land, beaches, and water surfaces, may be used by the state ownership unit and the collective ownership unit by law. The state is required to protect the usufructuary rights of the resources, and the use unit is obliged to manage, protect, and rationally utilize the resources. Article 81 also specifies that state-owned mineral resources and waters and collective-owned forest land, mountains, grasslands, unreclaimed land, and beaches cannot be sold, leased, mortgaged, or illegally transferred by any other means. The differences in how “water flow” is defined in the Constitution and how “water surface” is applied in the General Principles of Civil Law could be investigated further.

6.2.3 Property Rights Law The 2007 Property Rights Law defines the types of property rights. Article 46 in Section on Ownership Rights stipulates that waters fall under state ownership. According to Section on Usufructuary Rights, the usufructuary right holder has the rights to possess, use, and benefit from the real property or movable property owned by others (Article 117); the unit or individual can possess, use, and benefit from the natural resources owned by the state, those owned by the state and used by the collective, or those owned by the collective by law (Article 118); finally, the usufructuary rights holder exercising their rights is required to abide by the provisions of the law concerning the protection and the rational development and utilization of resources. The owner must not interfere with the exercise of the usufructuary rights holder’s rights (Article 120). Water abstraction rights acquired by law are protected by law (Article 123).

6.2.4 Water Law The Water Law in China is an administrative law that regulates water administrative relationships. The 2016 Water Law stipulates that water resources are defined as including surface water and groundwater (Article 2) and are owned by the state, with the ownership of such resources exercised by the State Council on behalf of 1 https://www.npc.gov.cn/npc/c13475/201004/0e53b6b04d1b4401b18404d93889a9a4.shtml.

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the state. The water of ponds belonging to rural economic collectives and the water of reservoirs built and managed by such collectives is permitted to be used by the collectives (Article 3). Article 3 of the 2016 Water Law stipulates the system of water resources rights. The water resources rights system consists of water resources ownership and the property rights and benefits deriving from the possession and use of water resources. It regulates water affairs and clarifies the related rights and obligations. The state ownership of water resources reflects demands generated by increasing water resources shortage and water pollution in China. The status of water as a public resource will strengthen the public management and control of water resources development and use (Huang 2003). Article 3 also specifies that state ownership is exercised by the State Council on behalf of the state (i.e., all people) to practice the right to possess, use, benefit from, and dispose of state-owned water resources. The State Council ownership of water resources clarifies that local governments are not the representatives of state-owned water resources, indicating that they have no right to arbitrarily allocate and dispose of water resources and can only allocate and dispose of water resources according to law or the authorization of the State Council. Moreover, the law endows the State Council with the function of conducting the asset management of state-owned water resources (see Chap. 13) and acquiring benefits from resources use. To follow the definition proposed in the General Principles of Civil Law (Article 81), respect history, and protect the rights and benefits of rural economic collectives and farmers to construct rural water infrastructures and rationally develop water resources, Article 3 defines the rural collective use rights. Articles 7 and 48 of the 2016 Water Law define water abstraction rights. Article 7 stipulates that the state should implement a water abstraction permit system and a compensation for water use system, except for the water of the ponds and reservoirs belonging to rural economic collectives that is utilized by such collectives and their members. Article 48 stipulates that any unit or individual that abstracts water directly from a river, lake, or underground aquifer should apply for a water abstraction permit, pay water resources fees, and acquire the necessary water abstraction rights, except in cases where only a small amount of water is taken for domestic use or for drinking by poultry and livestock reared outdoors or in pens.

6.3 Water Rights in China There are numerous debates about the definitions and nature of water rights in China. The fundamental issue concerns the property (private) rights or statute (public) rights of the resources. Water resources management has developed from a plannedeconomy system toward a market-based mechanism in China, resulting in questions about the feasibility of developing a water rights system under governmental control (Jiang 2018). Another key issue is the categories or components of the water rights

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system. There are theories proposing single water rights, dual water rights, threefold water rights, fourfold water rights, and water rights clusters. The single rights theory regards water rights as use rights, because ownership belongs to the state. The dual water rights theory consists of ownership rights and use rights, while the threefold theory includes operational rights. The fourfold theory is divided into ownership, use, disposal, and beneficiary rights. These debates aside, China has developed the following water rights for management purposes, according to the legal framework for the property rights of water resources.

6.3.1 Ownership Rights While the Constitution, Property Rights Law, and Water Law use different definitions of water, it is clear that water resources are owned by the state and that the State Council, on behalf of the state and its people, exercises these ownership rights. The 2018 governmental restructuring entitled the MNR to exercise the ownership of state-owned natural resources, including land, mineral, forest, grassland, wetland, water, and ocean resources.2

6.3.2 Collective Use Rights Collective use rights are defined in Article 3 of the Water Law. This rights framework is intended not only to maintain the integrity and unity of state water resources ownership, but also to fully protect the existing water rights and interests of the rural collective economic organizations and farmers, who have historically built China’s collective water infrastructure. Collective use rights entitle all rural collective economic organizations and their members to use the water in the ponds and reservoirs belonging to them, without this water use being subject to the water abstraction permit system and payment of water resources fees or taxes.

6.3.3 Regional water rights Hydrological randomness forms the basis of both permanent and temporary water rights, which is different from other natural resources such as land. Permanent water rights are the rights to develop and utilize an annual average water volume for a certain period of time (normally longer than a year). Temporary water rights refer to the rights of holders to develop or utilize the annual or seasonal water volume. 2 https://www.mnr.gov.cn/jg/sdfa/201809/t20180912_2188298.html

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Temporary water rights are formulated based on permanent water rights. Although permanent water rights are the basis of temporary water rights, the latter are the means for realizing the former. Regional water rights are established in Articles 45 and 46 of the Water Law. Article 45 defines the regional share/volume in the river basin water resources allocation plan, thereby determining permanent regional water rights. Article 46 defines the regional share/volume in the river basin annual water resources regulation plan and annual water resources regulation plan, thereby determining temporary regional water rights. According to China’s administrative system, these regions could consist of the province, prefecture, or county. Additionally, it is interesting to note that regional water rights are not named as “rights” in the government documents or legislation published before 2016. In the 2016 Interim Methods for Water Rights Trade Management by the MWR, the regional water trade is defined as the regional water rights trade (Article 3), which partially provides a legally established definition of such rights.

6.3.4 Water Abstraction Rights Water abstraction rights are a statutory concept of the Water Law (Article 48), which stipulates that abstraction rights refer to the right of a unit or individual to directly take water resources from rivers, lakes, and groundwater aquifers. These rights have the following characteristics: the holder of water abstraction rights must be a specific unit or individual; the objects of these rights are water resources, rather than water services; the rights must be acquired through approval and payment of water resources fees; and the approval of these rights is a specific administrative behavior in accordance with the application. Therefore, water abstraction rights are rights based on water abstraction behaviors. The abstractor obtains the water permit and pays the water resource fee to obtain abstraction rights, which entitle the abstractor to directly draw water from rivers, lakes, or aquifers. Since these water abstraction activities will affect the quantity and quality of the water resources at the intake point, the exercise of abstraction rights should follow the laws and regulations governing the abstraction location, amount, and method and the water resources fee payment. Consequently, obtaining the permit and paying the resource fee are prerequisites for obtaining abstraction rights. According to the water resources allocation framework and water abstraction permit management, permanent water abstraction rights are defined as the volume specified in the abstraction permit under abstraction conditions; temporary water abstraction rights are defined as the volume specified in the annual water abstraction plan issued by the permit approval agency.

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6.3.5 Water Rights Certificate and Water Ticket Within irrigation districts, the abstraction permit is usually held by the government agency responsible for administering the district. Farmers are then supplied their share of the water available to the irrigation district under the permit. In some areas in northern China, a district plan is developed that identifies each farmer or village’s share of the available water. In most cases, farmers do not hold any form of individual entitlement and allocations are made based on land area. In a few pilot areas, trials have been conducted on granting water certificates that identify each farmer’s share of the resource. This measure is coupled with a water ticket system, under which farmers pre-pay for the water they want in a particular year, season, or watering. Individual farmers are allowed to purchase water tickets up to a limit, which is determined based on their certificate volume and seasonal availability. Therefore, in the irrigation district at the farmer level, a water rights certificate can be regarded as the farmer’s individual right to water or permanent water rights. The water ticket, which defines the use volume that could be purchased by farmer, can be viewed as the farmer’s annual/seasonal water entitlements or temporary water rights. As with regional rights, the water certificate and water ticket are not named as “rights” or even explicitly defined in legislation before 2016. In the 2016 Interim Methods for Water Rights Trade Management by the MWR, the water trade between users in the irrigation district is developed (Article 3), which partially provides a legally established definition of these rights.

6.4 Challenges and Suggestions to Improve Water Rights System Development in China 6.4.1 Challenges to Implementation of a Water Rights System The existing legal, institutional, and management arrangements provide a solid water rights framework in China. However, there are significant issues that must be addressed to ensure that a comprehensive, integrated, and robust system evolves. These challenges include the following (WET 2006): Lack of definition, security, and certainty of rights. Water rights are not always well defined. The duration of rights can be uncertain, and there are limited rules and broad discretion for determining the annual availability of water under different water rights. Furthermore, there are limited protections for rights holders in the event of changes affecting their rights. Not all water and water users captured. Not all water abstractors are captured within the water permit system; some are exempted for historic reasons, others

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under statutory exemptions. Groundwater–surface water connections are not always addressed. No trading framework. The rights being traded are not always clearly specified; what rights can be traded is unclear; there are limited mechanisms for protecting the rights of other users and the environment; regulatory and contractual arrangements have been bundled together in transfer contracts. Limited rights of farmers. Within irrigation districts, generally no rights have been granted at the farmer level. It is also unclear who possesses the right to water under the irrigation district water permit. Water user associations are usually affiliated with the irrigation district management agency. Limited system capabilities. Many of the systems necessary to support water rights management do not exist: hydrologic modeling is not available to support permit and trading decisions, systems for the registration of rights are not of a high standard, and metering and water accounting systems require strengthening. Limited transparency and public reporting. Improved public reporting and greater transparency in decision-making are required to improve confidence and security, and it will (ultimately) be necessary to provide the information required to support a water market.

6.4.2 Recommendations for Implementing Water Rights System in China The following are the key recommendations based on the foregoing review of the water rights system in China: Improving consultation and public participation. Mechanisms should be established to improve the public awareness of water resources management issues and to promote public involvement in management decisions. In particular, water user associations should be reformed to provide a vehicle for representing the interests of farmers. Increasing transparency. The transparency of allocation and management decisions should be improved by setting requirements for reporting and making information and decisions regarding water resources management publicly available. Improving definition and protection of rights. Water rights, including the sharing and operational rules that determine the actual availability of water, should be clearly defined. The duration of rights and the conditions under which such rights or rules can be altered should be established. Providing technical guidance and allocation principles for water resources allocation plans. Guidelines for the development of water resources allocation plans

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should be developed to assist basin commissions and regions with preparing plans and allocating water rights. These guidelines should provide an approach to ensure effective plan–plan and plan–permit links are established. Strengthening the water permit system. The 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection should be implemented to provide a consistent approach to the granting and management of water abstraction permits. Volumes allocated under permits should be linked to total volume control limits. Inconsistencies between connected rights that are specified as abstraction or consumptive volumes should be addressed. Defining transfer rules. The circumstances under which transfers of water rights can occur should be clearly defined, including which rights can be transferred, the approval process, and the mechanisms for protecting against third-party impacts and impacts on the environment.

6.5 Summary This chapter deals with the legal aspects of the water rights system in China. It introduces the water rights system and its development, its challenges, and suggestions to improve the system. First, the development of the water rights system in China is briefly outlined. Then, the legal framework for this system, which consists of the Constitution of the PRC, the General Principles of Civil Law, the Property Rights Law, and the Water Law, is analyzed. The legally defined water rights are examined, including ownership rights, collective use rights, regional water rights, water abstraction rights, and water rights certificates and water tickets. Finally, current challenges are identified and suggestions to develop and improve the water rights system are proposed.

References 18th Central Committee of CPC. (2013). Decision on some key issues to fully deepen reform. Calow, R., et al. (2009). Irrigation development and water rights reform in China. International Journal of Water Resources Development, 25(2), 227–248. Chen, L. (2009). Implementing the strictest water resources management strategy to guarantee sustainable social and economic development. China Water Resources, 5, 9–17. Cosier, M., & Shen, D. (2009). Urban water management in China. International Journal of Water Resources Development, 25(2), 249–268. Jiang, M. (2018). Towards tradable water rights: Water law and policy reform in China. Springer. MWR. (1997). Water resources bulletin of China. MWR. (2014). Guidance to deepen water sector reform. MWR. (2016). Temporal methods for water rights trade management. Office of the State Council. (1987). The Yellow River available water resources allocation plan.

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Office of the State Council. (2013). The assessment methods of implementing the strictest water resources management strategy. Qian, Z. (1984). Speech on meeting of the provincial water resources bureau directors. Reservoir Fishery, 4, 2–4. Qian, Z. (1985). Congratulations and hopes. China Water Resources, 5, 1. Shen, D., & Speed, R. (2009). Water resources allocation in the People’s Republic of China. International Journal of Water Resources Development, 25(2), 209–226. State Council. (2011). Decision on deepening water sector development and reform. State Council. (2012). Opinion to implement the strictest water resources management strategy. State Council. (2015). General program for eco-civilization institutional reform. Wang, S. (1999). Realizing the transition from engineering-oriented water resource development to resources-oriented water resources development to do the better paper of water sector facing 21st century. Water Economics, 4(1–6), 17. Wang, S. (2001a). Water rights and water market: Economic instrument to realize optimal water resources allocation. Water Resources and Power, 1, 1–5. Wang, S. (2001b). Water rights and water-saving society. China Water Resources, 5, 6–8. Wang, S. (2004). Re-commenting on harmony between human and nature: Both discussion on dam and ecology. China Water Resources, 8(6–7), 9. WET. (2006). Water entitlements and trading project (WET Phase I) final report. WET. (2007). Water entitlements and trading project (WET Phase II) Final Report.

Chapter 7

Water Pricing

Abstract This chapter analyzes the water pricing framework, the reform process of pricing components, key issues, and suggestions. Water pricing reform in China after 1980 has been an exploration of various policy possibilities. In theory, China has developed a comprehensive, systematic, and advanced water pricing policy and framework. The framework establishes a variety of instruments that could, in principle, deal with various circumstances related to tariffs and their structure. In practice, however, the reform process in China has progressed hesitantly, through a series of trials and errors: in macro-policy, reform has wavered between economic, social, and environmental targets; in policy direction, tariff reform has gradually evolved from a service charge to a resources charge and finally an environmental charge, accompanied by increasing price levels. In future, under the decisive role of the market in the Chinese economy, it will be critical to develop a clear and sustainable water pricing formulation mechanism. Cost recovery should be redeveloped as a key principle for service charges. Keywords Water pricing framework · Water resources fee/tax · Water supply tariff from hydraulic engineering · Urban water supply tariff · Wastewater collection and treatment tariff · Pollutant discharge fee/tax · Cost recovery Water pricing is an efficient and effective instrument to manage water resources and their services, such as improving allocation and raising revenue. However, water pricing has many objectives focused on specific issues, and these goals often conflict with each other. Consequently, water pricing is a trade-off among different objectives (OECD 2010), making it the most difficult measure to implement politically to promote equity, efficiency, and sustainability in the water sector (Rogers et al. 2002; Dinar 2000).

The chapter is based on Shen et al. (1999) Water pricing theory and practices. Science Press: Beijing; Shen et al. (2006) Water pricing theory, methodology and practices. China Water and Power Press: Beijing; Shen and Wu (2017) State of the art review: water pricing reform in China. International journal of water resources development, 33(2): 198–232; Shen and Reddy (2016) Water pricing in China and India: a comparative analysis. Water Policy, 18 (S1): 103–121. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_7

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China has been implementing water pricing reform since the late 1970s, when it adopted a reform and opening policy to develop a market-oriented economy. For nearly 40 years, questions concerning water pricing and how to reform it to better price water resources and their services improve allocation, promote sustainable development, and support rapid social and economic development which have been at the center of China’s water policy (Central Committee of CPC 1982; State Council 2011; National Planning Commission 1997; NDPC 2000; MWR 2014; NDRC 2018).

7.1 Water Pricing Framework in China Judging from water-related legislation, China has developed a comprehensive water pricing framework over almost 40 years. Five fees and charges related to resources, services, and environmental issues are included in the framework: the water resources fee/tax, the water supply tariff from hydraulic engineering, the urban water supply tariff, the wastewater collection and treatment tariff, and the pollutant discharge fee/tax (Shen 2015).

7.1.1 Water Resources Fee/Tax The water resources fee pertains to resources charges. The fee is collected according to payment for water resources use, as defined in the 1988 Water Law and subsequently in the revised 2002 and 2016 Water Law, and is utilized specifically to facilitate water resources saving, protection, management, and development (Ministry of Financing et al. 2008). The fee is charged on the actual volume used by water abstraction permit holders, who directly divert water from rivers, lakes, and aquifers other than collective ponds for purposes except domestic use, watering livestock with a small quantity and emergencies. The collection standard is formulated by the provincial pricing department with the financial department and water department and approved by the provincial government. Of which, those for central and cross-province projects with permits approved by RBOs are defined by the pricing administrative department with the financial department and water department of the State Council (State Council 2006). The differential standards are required to promote water resources development, use, saving, and protection; to accommodate with local water resources and socioeconomic development; to coordinate the development of surface water and groundwater and prevent groundwater overdraft; and to consider the sectoral differences in water supply purposes. Currently, the water resources fee is levied for industrial, domestic, and hydropower uses, based on the actual use and the standard at the abstraction site. If such use exceeds the annual abstraction plan, an overcharge will be applied. The fee

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is collected by the permit approval agency, although those fees levied by the RBOs are instead collected by the provincial water department where the abstraction site is located. In 2016, according to the state requirement to expand resources tax coverage, China piloted a water resources fee-to-tax reform in Hebei Province (Ministry of Financing and State Administration of Taxation 2016; Ministry of Financing et al. 2016). The total tax revenue generated by this pilot scheme was three times greater than before the reform. In 2017, the pilots were extended to nine other provinces (Ministry of Financing et al. 2017). During these pilots, the fee rate was shifted to the tax rate without change, and the collection agency was transferred from the water resources department to a taxation agency.

7.1.2 Water Supply Tariff from Hydraulic Engineering The water supply tariff from hydraulic engineering is a kind of service charge for water supply from hydraulic engineering to the users, such as cultivated lands, water supply companies, and industrial enterprises. These engineering includes barring, storage, diversion, and pumping projects and supplies water without treatment. The tariff is formulated according to the principles of cost recovery, reasonable profit, higher price for better quality, and fair affording, and it is regulated by changes in costs, expenditures, and the water supply and demand relationship. The tariff is divided into agricultural and non-agricultural groups. The agricultural water supply is stipulated to cover costs and O&M expenditures, but without profits and taxes. The non-agricultural water supply is stipulated to not only cover costs and expenditures, but also pay taxation and generate profits. The profit is based on the net water supply asset with a rate of 2–3% more than the long-term commercial bank loan rate. The tariff for central and cross-province projects is approved by the pricing department with the water department of the State Council. The management rights and approval procedures for the local projects are decided by the provincial pricing department with the water department (NDRC & MWR 2003).

7.1.3 Urban Water Supply Tariff The urban water supply tariff is also a service charge. The urban water supply tariff refers to the price for commodity water supplied by urban water supply enterprises through an engineering facility that purifies and sterilizes surface and groundwater to ensure it meets national standards. The urban tariff is formulated according to the principles of cost recovery, reasonable profit, saving water, and fair affording. The urban water supply tariff implements governmental pricing and a system of hierarchical management according to a pricing management list. The pricing departments of the governments above the county levels are responsible for the urban tariff

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administration, with the support of the urban water supply administrative department. Additionally, the public hearings and noticings are required in tariff regulation (NDRC, Ministry of Construction 2004).

7.1.4 Wastewater Collection and Treatment Tariff The wastewater collection and treatment tariff is another service charge that is levied by the wastewater treatment company for collection and treatment services. According to the Urban Water Supply Management Methods, the wastewater treatment tariff is included in the urban water supply tariff and charged according to water usage and water supply scope. The wastewater tariff is formulated according to the operational and maintenance costs of the urban drainage network and wastewater treatment plants (NDRC, Ministry of Construction 2004). It is stipulated that the collection standard for the wastewater tariff should not be lower than the normal operation costs of the urban wastewater treatment facility (Article 33, 2013 Urban Drainage and Wastewater Treatment Regulation) (State Council 2013). The wastewater tariff follows the same management procedures as those for the urban water supply tariff.

7.1.5 Pollutant Discharge Fee/Tax The pollutant discharge fee is an environmental charge. This regulation stipulates that any polluter who discharges pollutants directly into the environment shall pay a discharge fee, but exempts those individuals or organizations discharging wastewater to urban wastewater treatment facilities and paying the wastewater treatment tariff from paying the pollutant discharge fee (State Council 2003). The fee is calculated based on the concentration and volume of the key pollutants. A unified unit fee system is applied across the country, and an overcharge is levied on those exceeding the discharge standard. The concentration and volume are decided based on observations reported by the polluter and the verification of the environmental protection agency. The fee is incorporated into governmental budgeting and used specifically for pollution control. The national collection standard is formulated by the pricing department, financial department, environmental protection department, and commercial administrative department of the State Council, according to requirements for pollution control sector development, pollution control, economic development and technology, and the affordability of the pollutant dischargers. The provincial government is permitted to formulate any local discharge standard not specified in national standards (State Council 2003). In 2018, with the implementation of the 2016 Environmental Protection Tax Law, the pollution discharge fee was reformed as the pollution discharge tax. The tax

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rate was copied from the pollution discharge fee with no initial change, similarly to the water resources fee-to-tax reform. This measure was the beginning of pollution discharge tax and the end of discharge fees in China. In summary, China has developed a complicated water pricing system, covering all aspects of the water resources development, use, and protection process and involving all levels of agencies from the central, provincial, prefectural, and country governments (Table 7.1). As discussed below, however, the inherent complexity of the system generates many implementation problems, such as conflicting interests.

7.2 Water Resources Fee/Tax In the late 1970s and early 1980s, national and regional governments promoted water saving to deal with emerging water shortages in cities in northern China and coastal regions. During this period, China used three water supply systems: the urban tap water system, the supply system from hydraulic engineering, and the selfsupplying system. Among these, the self-supplying system for larger and mediumsized industrial and mining enterprises provided 50% more water than the tap system, but was out of the management of water departments and easy to waste. Therefore, the regional governments began collecting water resources fees for self-supplying sources in some provinces in North China to improve water resources management. In 1980, Shenyang City in Liaoning Province levied a water resources fee on urban groundwater, the first such collection in China. Soon after, Beijing levied a volumetric charge on self-supply wells at a rate of 0.02 RMB/m3 under the water use plan and 0.10 RMB/m3 for exceeding the plan after April 1, 1981, using the revenue generated in groundwater management and recharge and for water saving (Beijing Municipal Government 1981). Hebei Province required the charging of a resources development fee on non-agricultural self-supply wells (Hebei Provincial Government 1981). In 1982, Shanxi Province issued the Water Resources Management Regulation of Shanxi Province and levied a water resources fee on self-suppliers according to actual abstraction volume at a rate of 0.03–0.06 RMB/m3 after 1983, with rural domestic and livestock use and irrigation exempted (Standing Committee of Shanxi Provincial People’s Congress 1982). Tianjin and Liaoning Provinces began adopting similar measures in 1987 (Tianjin Municipal Government 1987; Liaoning Provincial Government 1987). Over this period, these provinces in or around NCP all introduced charges on self-supply sources, especially urban groundwater, under the name of a water resources fee or another designation. The 1988 Water Law stipulated that the water resources fee should be levied on units directly abstracting groundwater in urban areas, while the fees for other direct abstraction from aquifers, rivers, and lakes should be decided by the provincial government. The law initiated a period of collecting water resources fees in China. Many provinces in northern China launched collection policies, such as Shaanxi (1992), Inner Mongolia (1992), Heilongjiang (1995), Qinghai (1995), and Gansu (1997). Some provinces in southern China also began collecting these fees, such

Water resources fee

Development

Pricing department Financial department Water department

Pricing department Financial department Water department

Central

Provincial

Contents

Water process

Management institutions

Prefectural

Resources charge

Category

Table 7.1 Water pricing framework in China Service charge

Pricing department Water department

Pricing department Water department

Pricing department Water department

Use

Water supply tariff from hydraulic engineering Protection

Wastewater treatment and collection tariff

Pricing department Urban water supply department

Pricing department Urban water supply department

Urban water supply tariff

Tax

Provincial government

Pricing department Financial department Environmental protection department Commercial department

Pollution discharge fee

Environmental charge

(continued)

Standing committee of National People’s Congress

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Water department

Use agencies

Hydraulic engineering management agency

Hydraulic engineering management agency

+

Pricing department Water department

Service charge

Urban water supply company

Urban water supply company

+

Wastewater treatment plant

Urban water supply company

+

Pricing department Urban water supply department

Environmental protection department

Environmental protection department

Environmental charge

Public

Taxation bureau

Source Shen and Wu (2017) State of the art review: water pricing reform in China. International journal of water resources development, 33(2): 198–232 Permission granted by Dajun Shen

Water department

Collection agencies

Resources charge

+

Country

User water tariff

Category

Table 7.1 (continued)

7.2 Water Resources Fee/Tax 149

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as Guizhou (1992), Guangxi (1992), Sichuan (1993), Guangdong (1995), Anhui (1993), and Jiangxi (1997). Most provinces only levied direct urban groundwater abstraction, which represented a very small percentage of water use. Urban water supply companies, which were the largest groundwater abstractors in northern China, were excluded. For other sources and purposes, almost all provinces did not collect fees, particularly after 1995 (Office of the State Council 1995). The 1997 Water Sector Industrialization Policy aimed to develop the water sector by increasing investment through industrialization (National Planning Commission 1997). As such, the policy required the state to implement a system of payment for water resources use and levy a water resources fee on direct abstraction from aquifers, rivers, and lakes. The revenue generated was regarded as a special fund for specific uses. Therefore, the fee collection coverage was extended to all water abstractions, including urban and rural areas, surface water, and groundwater. The revised 2002 Water Law incorporated the 1997 Water Sector Industrialization Policy. The law prescribed the collection scope and exemption, together with the terms of the water abstraction permit. Water resources management institutions reformed from “hierarchical management and departmental management” under the 1988 Water Law to a “combination of river basin management and jurisdictional management” under the 2002 Water Law, through measures implemented after the 1998 governmental restructuring. Consequently, the WAD was defined as the only agency with collection responsibilities, ending the previous involvement of the Ministry of Construction. To establish rules for water resources fee collection and management, almost 20 years after the 1988 Water Law, the State Council issued the Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection in 2006, as the national policy to implement the fee system. The Regulation clarifies the collection scope; develops the overcharge system for plan-exceeding abstraction; and also specifies the fee standard formulation principle, management agency and procedures, and revenue sharing and use between central and local governments. Most importantly, the Regulation develops the linkage with the water abstraction permit system (State Council 2006). In 2008, the NDRC, Ministry of Financing and MWR issued the Water Resources Fee Collection and Use Management Methods (NDRC et al. 2008). To implement and detail the national legislation, all provinces issued local legislation or policies. Following the implementation of the Regulation, with Tibet starting collection in 2009, all provinces now levy water resources fees. As for the collection standard, a gradual increase was promoted by the NDPC in 2000 to deal with a too low standard, which is unhelpful for promoting water saving and protection (NDPC 2000). The State Council advocated similar measures in 2004, along with enlarging collecting regions, particularly groundwater overdraft zones (Office of the State Council 2004). In 2013, more problems were identified, including inconsistent fee grouping, lower collection standards (particularly for groundwater), substantial fee differences among regions with similar water resources circumstances and socio-economic development, and ineffective implementation of the overcharge system for plan/quota-exceeding abstraction. In response, the NDRC re-clarified the fee standard formulation principles, including measures reflecting regional water

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resources circumstances and promoting the rational allocation, saving, and protection of water resources; coordinating surface water and groundwater development to prevent groundwater overdraft; encouraging low-consumptive water use; reflecting sectoral differences; and considering social affordability. The NDRC then classified fees into surface water and groundwater groups. The groundwater group consists of the purposes of agriculture, urban public water supply, industry and commerce, special sector, and others; besides these, the surface group adds hydropower and tubular thermal power use. The special sector includes car washing, bathing, golf courses, ski fields, and others. Furthermore, the NDRC developed low limits for province groups, divided according to water resources and socio-economic development, ranging from 0.1 to 1.6 RMB/m3 for surface water and 0.2–4 RMB/m3 for groundwater. Additionally, agricultural and rural domestic abstraction were exempted. However, fees were levied on quota-exceeding groundwater use in 2014, a lower standard was applied in mining dry water reuse, a higher standard used in the groundwater overdraft zone, and penalty overcharges on exceeding-plan/quota abstraction were required to be implemented (NDRC et al. 2013). In 2015, the state requested the promotion of water resources fee reform, research on levying a water resources tax, and pilots in groundwater overdraft regions (State Council 2015). Therefore, the Ministry of Financing and State Administration of Taxation selected Heibei Province as the pilot area, considering the extensive reform coverage and complexity. The pilot taxation scheme was conducted in a form of water resources fee-to-tax reform on surface water and groundwater. The tax is a specific duty based on water abstraction volume, requiring that the taxation rate of water-intensive sectors, plan-exceeding use, and groundwater abstraction in overdraft zones will properly increase, while other uses will maintain the same level as the water resources fee. The notice also mentioned that the pilot would be gradually expanded to other provinces, and the reform would eventually be fully implemented nationally (Ministry of Financing and State Administration of Taxation 2016). The pilot in Hebei Province started on July 1, 2016 (Ministry of Financing et al. 2016). In 2017, based on the experiences in Hebei Province, the pilot was extended to nine other provinces, including Beijing, Tianjin, Shanxi, Inner Mongolia, Shandong, Henan, Shaanxi, Ningxia, and Sichuan (Ministry of Financing et al. 2017). These provinces cover regions in northern and southern China, including water-shortage and water-plentiful areas. According to this reform process, the water resources fee-to-tax reform will soon be implemented in all provinces. Thus, over more than 30 years, the collection of water resources fees spread from NCP to northern China and then the whole country, to some extent representing regional developments in water shortages in China, gradually shifting from urban groundwater to all water abstractions, and then from industrial to domestic and agricultural use. Over the same period, the fee standard was raised rapidly. A water resources fee system has now been developed and fully applied in China. After full collection in regions, sources, and sectors, the fee-to-tax reform is fast promoted. At the end of 2013, the surface water resources fee average across 31 provinces was 0.205 RMB/m3 for domestic use and 0.282 RMB/m3 for industrial use, while the average groundwater fee was 0.649 RMB/m3 for domestic use and 0.778 RMB/m3 for

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industrial use. In 2012, the industrial surface fee ranged from 0.02 to 3.00 RMB/m3 , with 1.94 RMB/m3 in Beijing and 0.12 RMB/m3 in Guangdong; the domestic fee ranged from 0.02 to 2.75 RMB/m3 , with 1.32 RMB/m3 in Beijing and 0.12 RMB/m3 in Guangdong; the industrial groundwater fee was between 0.015 and 5.80 RMB/m3 , with 2.30 RMB/m3 in Beijing and 0.50–4.00 RMB/m3 in Guangdong; and the domestic fee ranged from 0.015 to 9.00 RMB/m3 , with 1.32 RMB/m3 in Beijing and 0.25–2.00 RMB/m3 in Guangdong (MWR 2013). Generally, the water resources fee standard is found to be higher in water-shortage regions, in developed regions, particularly groundwater overdraft regions, and for industrial and commercial use. In terms of amount, the national revenue increased rapidly from 1.29 billion RMB in 2001 to 15.10 billion RMB in 2013 (Fig. 7.1). Under increasing standards and improving collection, this revenue will continue to rise in the coming years. In 2012, of 12.86 billion RMB collected, 7.02 billion RMB was from surface water fees, 5.75 billion RMB from groundwater fees, and the remainder from other sources (MWR 2013). During a more than 30-year reforming process, the following issues, all of which are related to conflicting interests, have been raised: Debate on fee-to-tax reform. In China, tax is collected by the taxation department and classed as general revenue and used for general expenditure, while the administrative fee is collected by the relevant department into a special account in the financial system and utilized for special purposes. Thus, the administrative fee is a departmental revenue. This issue has been debated twice: first in the late 1990s 6 Urban Water Supply Tariff 5

Wastewate Treatment Fee Water Resources Fee

4

sum

3 2 1 0 1990

1995

2000

2005

2010

2015

Fig. 7.1 Beijing residential water tariff and regulation in 1990–2014. Unit RMB/m3 . *The 2014 urban water supply tariff is the first block price. Sources Beijing Development and Reform Commission Elaborated by the author, based on Beijing Development and Reform Commission. Permission granted by Beijing Development and Reform Commission on its website subject to proper citation

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when revising the 1988 Water Law, and more recently as part of ongoing discussions about deepening overall reform. The first proposal was not implemented because the collection procedure was in the preliminary stage and the requirements to levy tax were not in place due to the poor metering and monitoring system. The second proposal has support from the political willingness to implement and was confirmed in 2016. Consequently, the water resources fee will be reformed as a resources tax, and all the conflicting departmental interests discussed in the following sections will be eliminated. Share between central and local levels. This issue concerns the interests between the MWR and its RBOs involving the local water resources management bureaus. The share is not defined in the 2002 Water Law and 2006 Regulation, but in the 2008 Water Resources Fee Collection and Use Management Methods. The 10% central share is used for central and river basin level water resources management. Collection agency. Before the 1998 governmental restructuring, the Ministry of Construction was responsible for urban groundwater management, and the MWR was tasked with managing other sources. In most provinces, the fee was collected by two agencies: the urban water-saving agency under the Ministry of Construction and the water resources management agency under the MWR. Some provinces issued two policies to handle fees, such as Hebei Province (Hebei Provincial Government 1981, 1988). After 2003, the WAD became the only collection agency. Levy on agricultural water abstraction. Agriculture is the largest water user in China. However, due to this sector’s fundamental role in China’s economy and food security, it has always been exempted from water fees. In some provinces, such as Beijing and Shiyang River Basin in Gansu Province, quota-exceeding abstraction is required to be levied (Beijing Development et al. 2007; Standing Committee of Gansu Provincial People’s Congress 2007), but the implementation is questionable. Mineral characteristics of groundwater. Deep groundwater is considered mineral resources by the geological and mineral resources department. Therefore, a groundwater resources fee is levied by the geological department. However, there are longstanding disagreements over this fee, and its collection has been overturned in some provinces. In others such as Hainan, though, both a water resources fee and a mineral resources compensation fee are collected. Levy on power sector. Because the energy sector was more powerful than the water sector, in 1995 the Office of the State Council ordered that the fees for hydropower water use of stations under the central government and for the recycled cool water of thermal power stations should not be collected (Office of the State Council 1995). The Supreme Court supported this decision (Administrative Court of the Supreme Court 1996). Another case was on coal-mining drainage. In 1987, the Ministry of Financing decided not to levy on drainage activities because these are necessary aspects of production, according to suggestions from the Ministry of Coal Industry (Ministry of Financing 1987). At present, however, all these abstractions are subject to charges.

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7.3 Water Supply Tariff from Hydraulic Engineering After 1949, China emphasized project construction rather than management in the water sector. For many years, all costs and expenditures were fully covered by government subsidies. Water was supplied free of charge between 1949 and 1965, while very few tariffs were collected or levied instead of grains or farmers’ labor inputs for maintenance in some regions. In 1965, the MWP issued the Water Tariff Collection and Use Management Methods for Reservoir Projects, which specified that the management, maintenance, and renewal of water infrastructures and facilities with benefits should be resolved by water tariff collection from beneficiaries, according to the principles of self-financing, reasonable accumulation (profit), considering the benefits of beneficiaries, and economic circumstance (ability to pay). However, the tariff was very difficult to impose due to the poor ability to pay, and tariff revenue was too low to cover costs because of low standards (Dept. of Water Management, MWR 1991). In the early 1980s, the water sector was criticized for being expensive yet ineffective after 1949 and required to reformulate the water pricing system (Central Committee of CPC 1982). This assessment led to a requirement for the water sector to summarize lessons learned and improve its operation and management by reforming water investment and management systems (Qian 1981). Following the 1981 CPC document, the State Council issued the Water Tariff Formulation and Collection Management Methods for Hydraulic Engineering in 1985, aiming to guarantee the necessary revenues for the operation, management, maintenance, and renewal of hydraulic engineering. This document defined cost contents, tariff groups, and formulation methods. The water supply costs included operation and management costs, also accounting for maintenance, depreciation, and other expenditures. The agricultural tariff for grain production was calculated according to water supply costs, excluding the depreciation from fixed assets by farmer labor inputs, which for cash crops could be greater than supply costs. The industrial tariff was formulated according to full costs and a 4–6% investment profit rate. The tariff revenue was intended to cover the expenditures for the operation, management, maintenance, and renewal of hydraulic engineering, while the surplus could be used for development funding (State Council 1985). In most provinces, the detailed implementation regulations were issued after the national method. Although it is highly idealized, in theory, the 1985 Methods has solved the fundamental issues for a sustainable water pricing mechanism, such as clear cost grouping, cost recovery, and differentiated tariff structure. At that time, however, the tariff revenue was the administrative charge and was managed as the governmental out-ofbudget capital in 1992.1 More importantly, water tariffs were not an issue of costs. Considering China’s weak agricultural production and high inflation rate in the late 1980s, the collection standard had never met the requirements of the Methods and the collection process faced many difficulties. 1 Questions

and Answers to the Management Methods for Water Supply Tariffs from Hydraulic Engineering, available at https://www.chinawater.net.cn/Journal/cwr/200416/16.htm.

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In the 1990s, the establishment of market-based institutions bolstered China’s efforts to hasten its economic reforms (Jiang 1992, 1997) and positively promoted water sector reforms. In 1993, the MWR issued the Outlines of Water Sector Reform and Development for the 1990s, defining the objectives and pathway for water sector development. This document focused on increasing economic benefits and strengthening operations and management to establish new water sector institutions and operational mechanisms compatible with a market economy. To implement this document’s proposals, five systems, including a diverse investment system, an asset operation and management system, a pricing system, a legislative system, and a service system, were developed by the MWR (Niu 1995). Among these, the pricing system was the key to providing investment by some means and improving service and asset management by others. In 1997, the Water Sector Industrialization Policy was issued. As the most important water sector document of the 1990s in China, it aimed to clarify project characteristics and investment sources, define reasonable prices, and standardize tariff collection (National Planning Commission 1997). The Policy developed the tariff reform procedures, stipulating that the tariff for new-built projects should be formulated according to principles of cost recovery, payment for tax, returning loan, and reasonable profits; that those for existing projects should be regulated to a reasonable level within 3 years according to principles of cost recovery and purpose-based reasonable profits. At the same time, the tariff was required to be regulated with the cost change. Moreover, the Implementation Detail of Water Sector Industrialization Policy required the implementation of a tariff system with a volumetric charge and a basic charge (MWR 1999). The reform was radical and progressive. Impacted by the massive Yangtze Flood in 1998, which was to drive major water policy changes, the Policy and the tariff reform were not effectively implemented. In 1999, the average water tariff for central hydraulic engineering was 0.015 RMB/m3 , with a deficit of 0.018 RMB/m3 , while that for local engineering was 0.03 RMB/m3 , with a deficit of 0.017 RMB/m3 (NDPC 2000). In 2000, therefore, understanding that the tariff was not an issue of water and costs but linked to management institutions and instruments, the NDPC started to promote institutional reform, while also regulating the tariff to promote water saving and protection, reflect the value of water services, and consider social ability to pay. The reform developed different capital sources to cover hydraulic engineering costs and expenditures according to specific functions, stipulating that those associated with public interests, such as flood control, should be covered by governmental budgets, while others should be compensated by the tariff. Additionally, the rural water supply management institution was reformed to promote end-canal (village level) self-management by establishing WUAs. The farmer’s ability to pay and the two-tariff system for under-quota use and over-quota use were considered in agriculture (NDPC 2000). Thereafter, the reasonable pricing formulation mechanism was required to support hydraulic engineering management institutional reform (Institutional Reform Office of the State Council 2002). All these changes were incorporated into the 2003 Management Methods of Water Supply Tariff from Hydraulic Engineering (NDRC, MWR 2003). This document

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defined the formulation mechanism and the tariff contents, formulation principle and methods, and management authorities. Departing from the 1985 Methods, the 2003 Methods defines the water tariff as the commodity price, rather than an administrative charge. Considered independently, summarizing the lessons and experiences in tariff reform after 1980, the Methods is well-designed legislation that considers both the characteristics of water supply from hydraulic engineering and socio-economic development. If it is effectively implemented, tariff regulation and management would be greatly improved in China. After the national legislation, 22 provinces issued the local methods before 2012. In 2004, the tariff was increased to cover some parts of costs, requiring the government to raise the non-agricultural tariff to realize cost recovery and ensure profitability, while increasing the agricultural tariff gradually to cover costs after cancelling irrational additional charges (such as family planning costs, etc.) and reducing management expenditures (Office of the State Council 2004). With the national policy transitioning from economic-focused to social-focused in the 2000s, the water supply tariff was left unregulated for many years. The 2013 Decision on Several Key Issues on Fully Deepening Reform required the promotion of water sector pricing reform and deregulation of competitive prices to fully reflect market demand and supply, resources shortage, and environmental damage (Central Committee of CPC 2013). To implement the Decision, the MWR promoted the development of a market-oriented water pricing formulation mechanism to reflect water shortages and water supply costs (MWR 2014). This approach indicates a tariff transition toward water resources in addition to costs. Since agriculture is the largest user of hydraulic engineering water supply, China’s agricultural water tariff reform has been plagued by difficulties (see Chapter 15). In 1985, the tariff for grain production could only account for supply costs. The 1997 Water Sector Industrialization Policy did not alter this feature, although it was radical in other aspects. After 2000, with institutional reform and under the environment of the cancellation of rural taxes and fees, the country shifted toward subsidizing agricultural water use. In 2002, the farmer’s ability to pay was considered and many cost-reducing reforms were implemented, including the introduction of the WUA, canal system and metering improvement, and additional charge cancellation and management staff reduction (NDPC 2002). The 2003 Management Methods of Water Supply Tariff from Hydraulic Engineering required agricultural prices to recover water supply cost and expenditure, but did not account for profits and taxes (NDRC, MWR 2003). In 2004, the agricultural water supply tariff was listed in governmental pricing, and the end-user tariff was required to be implemented directly to farmers, with a volumetric charge if possible (Office of the State Council 2004). Given the increase of public finance resources and subsidies to farmers and the agricultural sector, agricultural price policy remained unchanged for an extended period. In 2011, the comprehensive agricultural water pricing reform was launched to promote saving, reduce farmers’ expenditure, and guarantee the operation of irrigation and drainage projects. The O&M costs were partly subsidized by government, and the under-quota preferential tariff and quota-exceeding increasing block tariff were explored (State Council 2011; MWR 2014).

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However, in October 2014, the NDRC piloted a new concept of comprehensive agricultural water pricing reform to define tariffs according to supply cost, water shortage, and affordability. The tariff for large- and medium-sized irrigation projects was intended to at least cover O&M expenditures, while attempting to cover other costs. The tariff for end-canal systems in large-, medium-, and small-sized projects was intended to cover costs, while generating profit if possible. The reduced payment from water saving in canal system improvement was intended to be used in tariff increases. The differentiated tariff system was intended to be implemented according to specific purposes (e.g., grain, cash crops, fishing, etc.) and sources (e.g., surface water and groundwater). The increasing tariff system was required to be applied to quota-exceeding use. Additionally, an accurate subsidizing mechanism and incentive fund were developed for water saving. With pricing reform, water rights clarification and the transfer and improvement of WUA were conducted (NDRC et al. 2014a). Furthermore, in 2017, a comprehensive pricing reform was promoted, under the precondition of not increasing the farmers’ burden, to coordinate the agricultural water pricing mechanism, the accurate subsidizing and water-saving incentive mechanism, the irrigation engineering management and maintenance mechanism, and the water use management mechanism (NDRC et al. 2017). In over 30 years, the water supply tariff from hydraulic engineering has experienced several transitions: from a charge on user’s expenditures in the early 1980s to a charge on supply cost; from an administrative charge before 2000 to a service charge; from radical and simple cost recovery and profits in the 1990s to functionbased cost recovery in 2000, and then to cost recovery and resources shortage after 2013. The process reflects the fluctuation of tariff reforms among social, economic, and resources targets. In 1980, according to investigations and calculations of 256 large-scale hydraulic engineering projects, the theoretical (calculated) price was 0.022 RMB/m3 , ranging from 0.012 to 0.048 RMB/m3 ; if reducing farmers’ labor and material inputs, the government investment accounted for 0.016 RMB/m3 , from 0.009 to 0.043 RMB/m3 (MWR, China Water Economy Research Society 1981). In 2007, the average tariff was 0.1442 RMB/m3 (MWR 2008). In 2012, water supply for agricultural irrigation cost 0.2589 RMB/m3 , among which the estimated cost of water supplied by state-owned enterprises (which normally operate large-scale and key projects) was 0.1751 RMB/m3 , while the cost at the end-canal system was 0.0838 RMB/m3 . The agricultural water charge was 0.0919 RMB/m3 , 35.5% of the cost, among which the charge by state-owned enterprises was 0.0621 RMB/m3 and that for the end-canal system was 0.0298 RMB/m3 . The average collection rate was 75.97% (MWR 2013). Thus, the cost-recovery target has not been met for agricultural water supply since 1980. Unlike the water resources fee, which involves many departmental interests, the water supply tariff from hydraulic engineering is relatively simple. However, the following perplexing issues have accompanied the reform process for more than 30 years:

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Nature of water supply from hydraulic engineering. The water infrastructures and their water supply have many functions and purposes involved with many interests. China could not suitably define the nature of water supply from hydraulic engineering. Such poor and mixed definitions have consistently undermined the tariff reform process. Characteristic of supply agency. This issue relates to the first. After over 10 years, China has not yet completed the institutional reform of hydraulic engineering. Inadequate governmental resources for public interests have resulted in partial reform, particularly in small-scale projects (Jiao 2005; Sun 2014). As the key player in water tariff reform, this characteristic of the agency disrupts attempts at pricing reform.

7.4 Urban Water Supply Tariff The rapid development of urban utilities in China started in the late 1970s. In the 1980s and early 1990s, the public utilities in China were operated and managed in a form of government and enterprise integration in management institutions, a single governmental source and investment in capital, a state-owned enterprise monopoly in operational mechanisms, and a strict plan in pricing formulation. This approach resulted in conflicts between rapid urbanization and infrastructure shortages, lower efficiency and poor service, and a heavy governmental burden.2 In 1984, facing a shortage in water sources, insufficient supply capacity, and severe use deficit, combined with fast-increasing demand before 2000 due to social and economic development, the State Council promoted urban water pricing reform to save water by cancelling flat charges, metering and implementing volumetric charges for domestic use in large- and medium-sized cities after 1986 (State Council 1984). In 1988, the Urban Water Saving Temporary Regulation introduced a planexceeding overcharge for non-domestic use and a volumetric charge for household use. It stipulated that new building projects should install a water meter in each household, while already existing residences should install a household meter within a defined time period (Ministry of Construction 1988). Prior to these measures, poor metering made it impracticable to implement efficient pricing methods, such as volumetric charges. Thus, to promote water saving and alleviate urban water shortage, the government reformed urban tariff structures and installed meters. In the 1990s, China accelerated economic institutional reform. The Implementation Methods for State-owned Urban Water Supply, Gas and Heating Enterprise Transferring Operational Mechanism aimed to promote the self-operation, selffinancing, and self-development of enterprises in adaptation to the market mechanism. It defined cost recovery and low profits for residential tariffs, with higher rates for industry and commercial supply. If a tariff did not meet cost-recovery targets and generated no profit, an enterprise could request government regulation (Ministry of 2 30-Year

Reform and Development of Urban Utility in China, available at https://www.china.com. cn/economic/txt/2008-11/18/content_16786580.htm.

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Construction 1993). The 1994 Urban Water Supply Regulations reiterated the same principles (State Council 1994). The 1998 Urban Water Supply Pricing Management Methods, as the most important document in urban water pricing, elaborated on the 1994 Urban Water Supply Regulations, providing the following stipulations (National Planning Commission, Ministry of Construction 1998): • The urban water supply tariff should implement governmental pricing, hearing, and public notice systems; tariff classifications should include residential, industrial, public agency, commercial, and special uses. • The tariff formulation should follow the principles of cost recovery, reasonable profit, water saving, and fair affording; the tariff consists of water supply costs, expenditures, taxes, and profits. The average reasonable profit should be 8–10% of the net asset of enterprise: where mainly government invested, this profit should not be higher than 6%; where mainly enterprise invested, including loans, foreign investments, bonds, or stocks, it should not be higher than 12% during loan-return time and should revert to average thereafter. • The two-part tariff should be implemented where the capacity charge covers fixed asset costs and the volumetric charge covers operational costs; the application of the two-part tariff for non-residential use should be consistent with the overcharge for plan-exceeding use. • The block tariff should be implemented for residential use according to specific conditions. Three blocks could be applied at the rate of 1:1.5:2, where the first block covers basic water usage, the second improves living standards, and the third meets special requirements according to market price. • The enterprise could apply for tariff regulation if its tariff revenue could not compensate operational costs or debt after governmental subsidy and enlarge supply capacity. The tariff regulation is approved according to the principles of promoting water supply development to meet social and economic demand, to ensure water saving and social affordability, and to improve cost-restraining. The 1998 Methods is advanced and comprehensive in terms of pricing principles, pricing structure and procedure. Consequently, no major revisions have been made since the document was first issued. However, the profit rate is too high to achieve, probably due to the intention to attract private investments and the high inflation rate between 1993 and 1996 when the Methods were formulated. Additionally, the attempts to introduce the block tariff did not fully consider metering issues. Thus, the following years saw a struggle to implement the measures proposed in the Methods, particularly the block tariff. In 2000, the urban tariff could only cover the purification cost, not the network costs, and it had not been regulated with change of costs. Therefore, the NDPC began to reform tariff levels and structure, considering both urban sector development and social affordability, by increasing tariffs and implementing a block tariff system to cover costs, ensure profitability, and promote enterprise self-accumulation and self-development (NDPC 2000). In the same year, the urban tariff was increased to promote water saving (State Council 2000).

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After years of implementation, at the end of 2001, the residential water tariff increased from 0.14 to 1.27 RMB/m3 , with most cities basically realizing cost recovery and 14 cities piloting a block tariff system. However, problems existed in the tariff components, formulation mechanism, and enterprise operational mechanism. The regulation had only aimed to solve enterprise deficits and reduce governmental subsidies, rather than to develop a saving incentive pricing mechanism. Moreover, the water supply enterprises were a state-owned monopoly with little incentive to improve efficiency and reduce costs (NDPC et al. 2002a). Therefore, the NDPC and other organizations urged the acceleration of both urban pricing and enterprise operation mechanism reform. The focus of pricing reform was to promote protection and efficient use. Both tariff level and structure were regulated. It was stipulated that the block tariff should be introduced in cities above the prefectural level before the end of 2003 and in other cities before the end of 2005, while water use plan and quota management and overcharge for quota-exceeding use would be implemented for non-household use (NDPC et al. 2002b). Prompted by similar concerns and responding to low tariffs in some regions that were failing to facilitate water saving, in 2004 the Office of the State Council required the regulation of the urban tariff under full consideration of the upstream water tariff (the water supply tariff from hydraulic engineering), water resources fees, reasonable profits, water quality improvement, and network and metering upgrades. The block tariff implementation was accelerated to obtain full coverage before 2005 and to enlarge blocks in those cities implementing the tariff. The “one household, one meter” improvement was strengthened to support this reform and quota and plan management for non-residential use (Office of the State Council 2004). The policy was comprehensive and covered many aspects of pricing, but no focus was identified. Next, a phase of water tariff increases followed. Most cities designed regulation programs under the “small step and fast pace” policy, including Beijing (Beijing Development and Reform Commission 2004) and Zhengzhou (Zhengzhou People’s Government 2005). However, after the first step, the tariff remained unregulated for an extended period due to social stability issues, such as high CPI in 2006 and 2007, the Beijing Olympics in 2008, and so on. In early 2009, several cities started a new-round tariff regulation to solve accumulated problems. In July 2009, the NDRC and MOHURD clarified the overall reform requirements, including promoting the saving, protection, and rational allocation of new-round tariffs; improving timing and planning based on considering social affordability; and conducting extensive explanations to facilitate public understanding and support. The stepwise plans were suggested in regions not regulated for a long time. The residential block tariff and non-residential quota-exceeding overcharge were again positively promoted. Additionally, tariff groups were simplified into residential, non-residential, and special water use. The non-residential group included industry, commerce, and public agency, while the special group included bathing and carwash purposes or was defined by the relevant local authority (NDRC and MOHURD 2009). The 2009 NDRC Notice indicated that the block tariff had not been fully implemented, although required before 2005. Additionally, a new perception of block

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tariffs was developed to protect low-income households, although the previous aim had been to save water. In reality, however, the stepwise regulation was not realized either due to high inflation rates during 2010–2012, as was the case in 2004. At the end of 2013, the NDRC and MOHURD again required the implementation of the block tariff structure before the end of 2015 in all cities and towns able to comply. It was stipulated that the block volumes should clarify the basic requirement and non-basic requirement, with the first block covering 80% of household water use, the second covering 95% of household use, and the third block covering the remainder. The block tariff rate was 1:1.5:3, and the charge period could be monthly, seasonal, or annual. Additionally, accelerating the “one household, one meter” policy that began in the 1980s was urged (NDRC and MOHURD 2013). More recently, many cities have introduced the block tariff, such as Beijing and Shanghai in 2014. In 2018, to promote green development, the urban tariff formulation and dynamic regulation mechanism to reflect water supply cost and promote water supply quality improvement were required to be developed through increasing the residential tariff to a level not lower than costs, while raising the non-residential tariff to cover costs and secure benefits. At the same time, the quota-exceeding overcharge system was to be fully implemented for urban non-residential use (NDRC 2018). After over 30 years of regulation, the urban water supply has been shifted from a welfare to a commodity basis with profit. In 1999, the average residential water tariff in 36 large- and medium-sized cities was 1.14 RMB/m3 , basically covering the costs but resulting in deficits in some cities (NDPC 2000). The urban water tariff in most cities has realized cost recovery, and the average water tariff increase is more than 20% in recent years (Ji 2009). At the end of 2008, the average urban water tariff for 36 large- and medium-sized cities was 1.50 RMB/m3 (Zhou 2010). In 2018, the average residential tariff was 2.19 RMB/m3 , with individual tariffs ranging from 1.63 to 4.00 RMB/m3 . Taking Beijing as an example, since 1990 the urban water supply tariff has been regulated on 10 occasions, increasing from 0.12 to 2.07 RMB/m3 . In terms of timings and increases, the tariff was adjusted frequently, about once every 2 years. Additionally, the tariff structure has been reformed from single tariff to block tariff (Fig. 7.1). The urban water supply tariff has been a service charge over the entire period considered, with over 30 years of reforms focusing on tariff structure and level. The structure reforms included shifts from a flat charge to a volumetric charge in the 1980s, together with “one household, one meter” implementation; further volumetric charge alterations in the 1990s; and the introduction of a block tariff in the late 1990s. However, the block tariff has not yet been fully implemented after more than 20 years of promotion. In the meantime, water tariffs have increased constantly. Additionally, the market-oriented reforms of water supply enterprises have affected pricing. During this process, the following two issues have significantly impacted reform: Cost recovery. Cost recovery is the basic principle for service pricing. But after over 30 years of reforms, it appears that urban water supply has not achieved cost recovery or cannot realize it from tariff revenue in China. In Beijing, for example, the urban

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water supply cost was 3.08 RMB/m3 (Beijing Development and Reform Commission 2014), 1.5 times more than the tariff. But under this deficit, supply capacity and population in Beijing have increased several times, which raises questions concerning the causes of this perplexing situation: Is cost recovery not a principle applicable to tariff reform? If not, why has this principle constantly been used as a guide to reform policies? Block tariff. The block tariff is more efficient and promotes saving if designed appropriately and with a metering facility. Although the block tariff has been discussed and implemented for almost 20 years in China, many cities have not yet introduced it. Several controversial issues are discussed in the Chinese context. First, water savings and implementation costs: given the low urban household water use in China (no outdoor water use in urban China) and improving living conditions, how much water could be saved? Moreover, what is the unit cost compared to the implementation costs? Second, metering and improvement costs: in the 1990s and 2000s, the “one household, one meter” goal was not realized. Since most meters must be installed in apartments, improving metering to meet the requirements of the block tariff is a substantial cost and will be burdened upon the user. Third, block design: given the large first block coverage of 90% water users, it is doubtful that the block tariff could promote water saving.

7.5 Wastewater Collection and Treatment Tariff In the 1980s, wastewater discharge in China increased slowly, but the government introduced requirements for saving water and reducing wastewater discharge (State Council 1984). In the 1990s, rapid economic development brought increasing discharge into water bodies and caused serious pollution. The pollution was exacerbated further by lagged urban wastewater collection and treatment infrastructures. The 1996 Water Pollution Control Law prescribed the building of an urban centralized wastewater treatment facility, charges for wastewater collection, and a treatment tariff. The 1998 Urban Water Supply Pricing Management Method specified that the wastewater tariff should be formulated based on the operation, maintenance, and construction costs of urban wastewater collection networks and plants (National Planning Commission, Ministry of Construction 1998). In the 1990s, some cities began to collect a wastewater treatment tariff and used it to fund the construction and operation of centralized treatment facilities. However, the low collection standard and rate combined with poor management meant that the revenue generated could not cover the maintenance and operation costs and expenditures. Therefore, in 1999, the NDPC and other organizations demanded the step-by-step regulation of the tariff according to principles of affordability, covering the O&M costs of the drainage network and treatment facilities, and reasonable profit. Cities in heavily polluted regions were also required to cover the O&M costs of the network and treatment facilities in 1999 (NDPC et al. 1999).

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The NDPC notice was not effectively implemented, although the collection rate was gradually increased. The average collection rate was only 0.2–0.3 RMB/m3 in 1999, too low to support the operation of wastewater facilities. In 2000, all cities were required to charge a wastewater tariff and to regulate the collection standard to cover costs and generate profits (NDPC 2000). Dealing with deteriorating urban water pollution, the State Council further required the tariff to be levied as soon as possible in all cities and prioritized raising the tariff to cover costs and generate profits to meet the emerging construction and operation demand of the facilities (State Council 2000). By the end of 2001, a little over 200 out of 663 cities in China were collecting tariffs, which was not a good outcome for the policies introduced in 2000. The central government had to require all cities to collect tariffs before the end of 2003 again. Additionally, to develop the wastewater sector through industrialization, the NDPC and others stipulated that the collected revenue should cover the operational costs of treatment plants and have a reasonable investment return, considering network construction expenditures if possible. All units in urban areas, including self-supply sources, were required to be levied (NDPC et al. 2002a, b). However, water pollution was not alleviated after tariff collection in most cities. In 2004, the State Council urged the following measures: increasing tariffs to cover costs and generate profit or to formulate the lowest limit to guarantee normal operation of facilities; starting collection within a specified time limit; and improving the collection rate, particularly for self-supply sources (State Council 2004; Ministry of Construction 2004). In the subsequent years, almost all cities in China have levied wastewater tariffs. However, as occurred with the urban water supply tariff and new round of water pricing regulations in 2009, the government continuously emphasized a lower tariff standard to promote healthy wastewater sector development. In lower tariff regions, the regulation of wastewater tariffs was prioritized (NDRC and MOHURD 2009). The 2013 Urban Drainage and Wastewater Treatment Regulation constitutes a turning point. The Regulation stipulates that the tariff should not be lower than the normal operation costs of an urban wastewater treatment facility; if the revenue cannot cover the costs, the facility should be subsidized by local government. The tariff is collected by an urban water supply company, transferred to government and subsequently managed in the local financial system. The revenue is disbursed to the wastewater treatment facility operation service providers according to the operation contract and treated water quality and quantity (State Council 2013). The Regulation changed the tariff from a service charge to a governmental administrative charge and provides no requirement for generating profits. Evidently, the government recognized the difficulties involved in realizing cost recovery through wastewater tariffs and provided another option. Following the Regulation, the 2014 Wastewater Treatment Tariff Collection and Use Management Methods details the changes in collection and use. This document reiterates that the wastewater treatment tariff is a fee levied on dischargers and used specifically to fund urban wastewater treatment facility construction, operation, and

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sludge disposal according to the polluter pay principle; the tariff belongs to governmental non-tax income and fully handed over to local treasure. It stipulates that the collection rate should be formulated based on principles of covering wastewater treatment facility operational and sludge disposal costs and generating profit. The revenue and local governmental subsidy are paid to urban drainage and wastewater treatment service providers through governmental service buying (Ministry of Financing et al. 2014). In January 2015, according to the principles of “polluter pay, fair affording, compensating cost, reasonable profit,” the NDRC and other bodies stipulated that wastewater tariffs be regulated according to local pollution control requirements and social affordability. It was further required that before the end of 2016, the tariff should be increased to no less than 0.95 RMB/m3 for residential use and 1.4 RMB/m3 for non-residential use in cities, along with 0.85 RMB/m3 for residential use and 1.2 RMB/m3 for non-residential use in towns. Those cities achieving the minimum standard but not compensating costs and generating profit were permitted to increase the tariff further. All cities and key towns were required to be collecting tariffs by 2015. It was also stipulated that the differential tariff could be formulated for standard-exceeding discharge and pollutant types (NDRC et al. 2015). In 2018, to promote green development through economic incentives, the state accelerated the development of the wastewater pricing mechanism to cover wastewater treatment and sludge disposal costs and provide rational benefits by introducing a dynamic regulation mechanism, differentiating a levy mechanism for enterprise, devising a pricing mechanism compatible with wastewater treatment standards and exploring the possibility of a rural wastewater treatment charging system (NDRC 2018). Due to increasing pressure to regulate wastewater tariffs, the tariff rate has risen rapidly in the last 20 years, but not by a level sufficient to cover costs. In Beijing, for example, the wastewater tariff was 0.10 RMB/m3 when collection began in 1997, increasing to 0.30 RMB/m3 in 1999, 0.50 RMB/m3 in 2002, 0.90 RMB/m3 in 2009, and 1.36 RMB/m3 after 2014. Based on the lessons and experiences acquired from the urban water supply tariff, the original purpose for levying a wastewater tariff was simple: to cover costs and generate sufficient profits to support wastewater sector development. However, nearly 20 years of regulation proves that it is highly difficult to recover costs for wastewater treatment in China. Thus, the government has returned to using administrative charges and providing subsidies. It is especially interesting to note that the proper pricing methods could not achieve the expected results. Therefore, the problem in the near future will be how to reform service pricing management systems, such as cost auditing and public hearing. For more than 20 years, the nature of the tariff and cost recovery have been the key issues in wastewater tariff formulation. Nature of the tariff. This refers to the service charge or administrative charge of the tariff. Unlike supply tariffs, the wastewater tariff was almost always defined as a service charge in theory and policy direction, but implemented as an administrative

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charge in most cities due to low tariff levels probably influenced by social pressure. Undermined by internal tensions and conflicting interests, and defining its aims one way but practicing them in another, this policy failed. Following the 2014 reform reversals, more time is required to prove another internally contradictory policy successful. Cost recovery. As with the urban water supply tariff, cost recovery has been the core of the 20-year reform process, but remains unrealized. This failure raises questions concerning policy: is cost recovery a reliable principle and is it appropriate for wastewater pricing?

7.6 Pollutant Discharge Fee/Tax The introduction of a charge on pollutant discharge occurred relatively early in China. The 1979 Environmental Protection Law stipulated that the pollutant discharge fee should be levied according to the volume and concentration of pollutant discharged if exceeding the national standard. The 1989 Environmental Protection Law reiterated that units should pay a standard-exceeding pollutant discharge fee and that revenue must be used in pollution control. The 2014 Environmental Protection Law revised these measures, requiring that the discharger should pay a pollutant discharge fee according to national regulations, which extended the collecting scope from standardexceeding discharge to pollutant discharge (Standing Committee of NPC 1979, 1989, 2014). In fact, the 1984 Water Pollution Control Law had already defined the pollutant discharge fee and stipulated that units discharging pollutants to water bodies should pay a pollutant discharge fee, and if exceeding national or local standards should pay a standard-exceeding fee. The 1996 Water Pollution Control Law introduced no notable changes. The 2008 Water Pollution Control Law further clarified that those units that directly discharge pollutants into water bodies should be levied a pollutant discharge fee according to pollutant types, volume, and collection standards (Standing Committee of NPC 1984, 1996, 2008). To implement the 1979 Environmental Protection Law, the provincial governments piloted a fee collection scheme. Summarizing these pilot experiences, the State Council issued the Temporary Methods for Collecting Pollutant Discharge Fee in 1982 to regulate the levying of fees throughout the country. The Methods specified that polluters should report and register pollutant types, volumes, and concentrations to provide the basis for collecting fees after validation by the environmental protection agency or appointed monitoring agency. If more than two pollutants were discharged, the pollutant with the highest fee would be collected from the discharger (State Council 1982). The Methods divided the pollutant concentration groups into those exceeding the discharge standard by 5, 5–10, 10–20, 20–50, and over 50 times the accepted level and set corresponding rates for different pollutants between 0.04 and 2.00 RMB/m3 .

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In 1986, 720 million RMB in wastewater discharge fees was collected for standardexceeding discharge, 60.4% of the total pollutant fee. The total collected was 4.608 billion RMB in the first 10 years. However, the design of the 1982 Methods existed the problems, such as a fee rate far lower than the treatment costs, single-pollutant collection for multi-pollutant discharge, simple block design, higher unit standard for lower concentration, and lower for higher concentration, among others (Wu and Tang 1991). In 1991, the calculation methods were adjusted by directly multiplying exceeding times with the standard rate. However, the two-group rate design did not overcome the problem of discharging more and charging less per unit (SEPA et al. 1991). In 1993, the National Planning Commission and Ministry of Financing exempted public welfare agencies (including schools, kindergartens, etc.) from fee collection, capped the rate at 0.05 RMB/m3 , decentralized rate-formulating rights to the provinces, which could decide to levy or not, and levied standard-exceeding discharge but not pollutant discharge (National Planning Commission, Ministry of Financing 1993). This approach was strange because to some extent, it violated the 1984 Water Pollution Control Law and encouraged pollution. However, it was probably driven by the economic development priorities of this period. Consequently, further increases in water pollution were inevitable in the late 1990s. After 10 years, the Pollutant Discharge Fee Collection and Use Management Regulation was issued by the State Council in 2003. The Regulation reformed the standard-exceeding levy to cover both discharge and standard-exceeding discharge levies, also altering the single-pollutant levy to a multi-pollutant levy. The Regulation also clarified rate-formulating rights, calculation methods, and the pollutant reporting, verification, and re-verification procedure (State Council 2003). In the same year, the Management Methods of Pollutant Discharge Fee Rate was issued. This document stipulated that the wastewater pollutant discharge fee should be levied according to pollutant equivalent at a rate of 0.7 RMB per equivalent. The equivalent was calculated based on pollutant type and volume; the multi-pollutant discharge was levied on the three highest pollutant equivalents. In cases of standard-exceeding discharge, a one-time more pollutant discharge fee is collected as standard-exceeding charge (NDPC et al. 2003). However, revenue increased slowly. More importantly, it was too low given the deteriorating water pollution following the 2003 reform. These shortcomings caused extensive criticism. The revenue decrease after 2007 misled that water pollutant discharge decreases. Therefore, in 2014, the NDRC doubled the collection rate and changed the methods and groups. Before June 2015, the NDRC required an increase to no less than 1.4 RMB per equivalent for COD, ammonia and five key metals (Pb , Hg , Cr , Cd , arsenic), stipulating further that the five metal pollutants must be charged and other pollutants should be charged on the three highest pollutant equivalents. At the same time, provinces were permitted to regulate the rate and encouraged to formulate a higher rate in key pollution control and economic development regions. In cases of discharges exceeding standards or exceeding the enterprise allowable discharge volume, one additional fee will be charged; if discharge exceeds both standard and

7.6 Pollutant Discharge Fee/Tax

167

volume, two additional fees will be charged. If the enterprise’s production equipment or product is in the governmental eliminated list for industrial structure adjustment, the fee will also be doubled. Moreover, if the discharge concentration is less than 50% of the national or local standards, the fee will be halved (NDRC et al. 2014b). Therefore, the method developed levies both on discharge standard and volume, while encouraging clean production and punishing pollution (Shen and Guna 2018). In 2018, the state began to levy an environmental protection tax instead of the pollution discharge fee. In more than 30 years, the pollution discharge fee has evolved from a standard-exceeding levy to a pollutant discharge levy, together with the increasing rate and structure reform from single factor to multi-factor, and has finally been reformed as a tax. During this process, the most controversial issue has been the relationship between the fee collection and worsening water pollution. The small and decreasing amount collected and the increasingly degrading water environment have incurred extensive criticisms. In response, the government prepared to reform the fee into an environmental tax in 2015.3 Another discussion is the collection of fees levied on wastewater treatment plants, which are the largest point-source pollutant dischargers in China. While SEPA preferred to collect such fees, the Ministry of Construction, the administrative department of these plants, did not. The 1993 Notice on Collecting Wastewater Discharge Fee required payment (National Planning Commission, Ministry of Financing 1993), but in 1997, the Ministry of Financing and other bodies specified that only standardexceeding fees should be collected (Ministry of Financing et al. 1997). At present, according to the 2003 Management Methods of Pollutant Discharge Fee Rate, if the discharge level meets the relevant standards, no fee is charged; if not, an additional fee is collected for organic pollutants (COD, BOD, total organic carbon), TS (suspended solids), and E.coli, while ammonia and total phosphorus are not levied. However, both fees are collected for wastewater plants if the facility is situated in an industrial park. The tax follows the same arrangements.

7.7 Some Issues Water pricing has five important objectives: revenue sufficiency, economic efficiency, equity and fairness, income redistribution, and resource conservation. Moreover, the designing of price policies and tariff structures should consider public and political acceptability, simplicity and transparency, and net revenue stability and ease of implementation (Boland and Whittington 2000). However, some of these considerations, such as political and public acceptability, may clash with the basic objectives of pricing.

3 The draft has reported to the State Council and environmental protection fee-to-tax reform fastens,

https://gb.cri.cn/45731/2014/11/05/7493s4754785.htm.

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7 Water Pricing

7.7.1 Nature of Water and Its Services There is now consensus at the international level that water is scarce and needs to be treated as an economic good. Allocating water as a pure economic good is more complicated than for other goods and services, mainly due to water’s status as a public good and the externalities associated with it. Whatever good is selected, the dilemma is whether to pay resources value, environmental damage, and service costs by user or to face unsustainable financial operation, resources development, and environmental degradation of the system. Treating water as a social good inevitably generates economic and environmental problems, whereas treating water as an economic good results in social problems. China has suffered from the unclear/mixed definitions and frequent changes, particularly due to rapid social and economic transition. The water sector was pushed to increase efficiency and seek economic benefits in the 1980s, but returned to its position as a crucial industry through industrialization in the 1990s, and then played a strategic and fundamental role in society and the ecosystem in the 2000s. After 2010, it has been influenced by public interest, but with the market playing a decisive role. Therefore, over a period of more than 30 years, the water sector began as an economic good, transitioned to an environmental good, then a social good, and now appears to be returning to the status of an economic good. However, water pricing reform has not followed the same path. While the resources charge and the environmental charge were introduced in the 1980s, considered as an economic instrument, water pricing consistently targets economic goods, for instance, to recover costs or reflect water shortages or environmental costs. Conversely, the practical pricing regulation has followed the social target, impacted by economic development and social stability concerns. This mismatch between objectives undermines the effectiveness of pricing tools in China.

7.7.2 Cost Recovery In theory, cost recovery is the basic principle for pricing and the basis for the economic good. However, over 30 years of reform history indicates that costs could not be compensated for by tariffs in the water sector in China. This outcome raises the question of whether it is appropriate to identify cost recovery as the key principle for tariff reform? Alternatively, could the public sector with a natural monopoly achieve cost recovery? Or, considered from another perspective, is the cost too high to ensure such recovery? In China, full cost recovery is raised as a principle. However, under the current “cost plus profit” pricing regulation methods and ineffective regulatory practice, the tariff could never cover the costs due to information asymmetry. This problem indicates the need to reform the regulatory system. An incentive-based regulatory system would probably be a feasible option.

7.7 Some Issues

169

7.7.3 Water Price Burden In China, almost all decision-makers and researchers conclude that the current water price is too low and does not facilitate water resources allocation, protection, and saving. Taking Beijing as an example, the share of expenditure on water and wastewater service as a proportion of urban disposable income was between 0.62 and 1.23% during 2003–2012. Compared to 0.2–1.2%, with most countries below 0.8%, in the OECD countries in 2008, the water tariff burden in China is not lower internationally (OECD 2010). At the same time, given the high abstraction fee and relatively lower water quality (compared to developed countries) in most Chinese cities, the water tariff is not especially low in China. That said, under the affordability between 2.5 and 3.0%, adequate space is available for tariff regulation.4

7.8 Suggestions In consideration of the experiences and lessons from water pricing reform in the past 30 years and more, further reforms are required in the following aspects. Formulation of water pricing mechanism While China began attempting to develop a sustainable water pricing mechanism as early as in 2000, it should be recognized that this mechanism has not yet been devised. The water pricing mechanism should be established as soon as possible, however, to avoid the kinds of temporary and periodic pricing reform promoted by various policy guidance documents after 2000. The mechanism must clarify water price regulation conditions and periods to develop the clear rules and anticipation required for price change. Pricing regulation has been impacted by many internal and external factors in China, creating barriers to the formulation and implementation of the pricing mechanism. Furthermore, the mechanism should consist of clear and standardized price regulation procedures, while also ensuring the responsibility of the organizations. Additionally, the mechanism should develop an information disclosure procedure, since public information disclosure is the basis for formulating such a pricing mechanism. However, there is a significant information asymmetry in the water sector, particularly in enterprise information. Detailed and clear costs and expenditures data have not yet been made available to the public. More importantly, the water pricing formulation mechanism should balance the respective interests of service providers and users. Under general pricing principles, water pricing reform should encourage enterprises to improve efficiency and service quality and incentivize users to save water. While the regulatory agency 4 https://www.pacinst.org/wp-content/uploads/2013/01/water-rates-affordability.pdf.

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cannot operate on behalf of service providers, it cannot refuse rational cost-recovery requirements from enterprises due to the social pressure on tariff increases either. Implementing and realizing cost-recovery principle for water services Cost recovery is the basis for pricing water services. Although China has defined cost recovery as the basic principle in all legislation, there are no data indicating that this principle has been realized in any types of water services. This shortcoming is the main barrier to a breakthrough in water pricing reform in China. It is difficult to realize cost recovery, but stepwise implementation plans should be formulated and conducted. Additionally, the scope of the costs could be gradually expanded from basic operational and management costs to capital costs, and finally to ecological and environmental costs. Water pricing management institutional reform The present water pricing management institution in China is highly complex. Water pricing policies are developed by several administrative levels and departments. In theory, a county-level water pricing regulation could be involved with management agencies from central, provincial, prefectural, and county levels, as well as various departments, such as water, construction, and financial, under the leadership of the pricing department. Therefore, water pricing reform and management is the result of multi-level and multi-department coordination and collaboration. After the formulation of the water pricing mechanism, it is suggested that the water pricing management power be decentralized. At present, some central power could be decentralized to the province level. The national pricing department would be responsible for the macro-pricing policy and water pricing reform target, but not for detailing reform. The province would be in charge of detailed planning and implementation, according to its level of water resources and water sector development. Additionally, the province could allocate its pricing management powers in the province. Improving implementation of management methods of water supply tariff from hydraulic engineering The water supply tariff from hydraulic engineering is part of the user’s bill. Due to influences from many factors, the definition in the 2003 Methods has not been realized. Thus, the emphasis of water supply tariff reform should be on fully implementing the Methods. The water supply tariff from hydraulic engineering to industrial and urban domestic purposes should follow the principles of “cost recovery, rational benefits, higher price for better water service, and fair affording” and be regulated periodically according to changes in supply costs and expenditures and market supply and demand. The profit rate should be accounted according to the net water supply asset.

7.8 Suggestions

171

Improving urban water supply tariff structure In general, under a similar treatment process and the same water quality requirement, the differences in the urban water supply tariff among cities are not significant, compared to those for the water resources fee. In terms of tariff regulation, the urban tariff increased rapidly from the 1980s to around 2000. After 2005, water pricing reform has not focused on urban tariff regulation. Even after 2012, following the implementation of new drinking water quality standards with 106 indicators, the urban water tariff was not increased significantly. Therefore, in future, urban water tariff reform should emphasize tariff structure, especially the following aspects. Promoting non-residential plan-exceeding overcharge system According to regional water resources availability and water supply cost, the differentiated and sector-focused plan-exceeding overcharge tariff should be designed and applied to promote industrial structure upgrades through water resources management. Continuing promoting the implementation of the block tariff and improving block and its tariff Under current coverage, the block tariff should be applied to all cities and expanded to towns. At the same time, a well-designed block tariff could handle several pricing targets, such as both guaranteeing water use for low-income families and promoting water use efficiency. Therefore, with the introduction of this block tariff, the urban water tariff would almost be finalized. It is thus necessary to improve the block and its tariff. Instating service charge for wastewater collection and treatment tariff Wastewater collection and treatment is a service. The charge on this kind of service should be implemented according to the cost-recovery principle. Although it was applied according to this principle when tariff collection began, as well as being stipulated in legislation and policy documents, the wastewater tariff collection standard formulation and implementation have not ensured cost recovery. Consequently, the revenue from tariff collection could neither recover wastewater treatment costs, nor be levied as a service charge. Finally, in 2013, China separated tariff collection and use: the tariff is intended to cover costs, but is utilized and managed as an administrative charge and with a governmental subsidy. Although a difficult reform process lies ahead, in future, wastewater tariff reform should reflect the cost-recovery principle and insist on service charges. The wastewater treatment tariff should be regulated according to the legal requirement and increased gradually to cover the operational costs for treatment facilities and sludge disposal, with the aim of eventually generating profits. With increasingly strict treatment and discharge standards being introduced to control pollution, the tariff should be further increased.

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7 Water Pricing

7.9 Summary Water pricing reform in China after 1980 has been an exploration of various policy possibilities. In theory, China has developed a comprehensive, systematic, and advanced water pricing policy and framework. The framework establishes a variety of instruments that could, in principle, deal with various circumstances related to tariffs and their structure. In practice, however, the reform process in China has progressed hesitantly, through a series of trials and errors: in macro-policy, reform has wavered between economic, social, and environmental targets; in policy direction, tariff reform has gradually evolved from a service charge to a resources charge and finally an environmental charge, accompanied by increasing price levels. In future, under the decisive role of the market in the Chinese economy, it will be critical to develop a clear and sustainable water pricing formulation mechanism. Cost recovery should be redeveloped as a key principle for service charges.

References Administrative Court of the Supreme Court. (1996). Response to collecting water resources fee on thermal power station under the central government. Beijing Development and Reform Commission. (2004). Notice of water tariff regulation. Beijing Development and Reform Commission, et al. (2007). Temporary methods for agricultural water resources fee in Beijing. Beijing Development and Reform Commission. (2014). Cost-auditing report for Beijing urban water supply. Beijing Municipal Government. (1981). Beijing groundwater resources management temporary methods. Boland, J., & Whittington, D. (2000). The political economy of water tariff design in developing countries: Increasing block tariffs versus uniform price with rebate. In A. Dinar (Ed.), The political economy of water pricing reforms. Oxford University Press and The World Bank: Washington D.C. Central Committee of CPC. (1982). Minutes of national rural works meeting. Central Committee of CPC. (2013). Decision on several key issues on fully deepening reform. Dept. of Water Management, MWR. (1991). Theory and formulation methods of water supply tariff from hydraulic engineering. Water and Power Publisher: Beijing Dinar. A. (2000). Political economy of water pricing reforms. In A. Dinar (Ed.), The political economy of water pricing reforms. Oxford University Press and The World Bank: Washington D.C. Hebei Provincial Government. (1981). Urban groundwater resources management temporary methods of Hebei Province. Hebei Provincial Government. (1988). Water resources fee collecting temporary provisions on country town and its lower regions of Hebei Province. Institutional Reform Office of the State Council. (2002). Implementation opinion on hydraulic engineering management institution. Ji, P. (2009). Urban water tariff reform circumstances and suggestions for China. Macro-Economic Management, 4(48–49), 52. Jiang, Z. (1992). Speech on the 14th National Congress of CPC. Jiang, Z. (1997). Speech on the 15th National Congress of CPC.

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Jiao, Y. (2005). Speech on experience-communication meeting on national hydraulic engineering management institutional reform. Liaoning Provincial Government. (1987). Liaoning water resources fee collection management temporary methods. Ministry of Construction. (1988). Urban water saving temporary regulation. Ministry of Construction. (1993). Implementation methods for state-owned urban water supply, gas and heating enterprise transferring operational mechanism. Ministry of Construction. (2004). Opinion on strengthening urban wastewater treatment plant operation management. Ministry of Financing. (1987). Notice on not collecting water resources fee on groundwater drainage in coal-mining process. Ministry of Financing, et al. (1997). Notice on some issues on urban wastewater treatment charging in Huai Riverbasin. Ministry of Financing, et al. (2008). Water resources collection and use management methods. Ministry of Financing, et al. (2014). Wastewater treatment tariff collection and use management methods. Ministry of Financing, et al. (2016). Interim methods for water resources fee-to-tax pilot. Ministry of Financing, et al. (2017). The implementation methods to expand water resources feeto-tax pilot. Ministry of Financing, & State Administration of Taxation. (2016). Notices to fully promote resources tax reform. MWR. (1999). Implementation detail of water sector industrialization policy. MWR. (2008). 2007 Statistic bulletin on China water activities. MWR. (2013). 2012 water resources management bulletin. MWR. (2014). Guidance on deepening water sector reform. MWR, China Water Economy Research Society. (1981). Minutes of discussion meeting on water supply tariff from hydraulic engineering. NDPC, et al. (1999). Notice to strengthen wastewater treatment fee collection, development the better operation mechanism for urban wastewater discharge and centralized treatment. National Planning Commission. (1997). Water sector industrialization policy. National Planning Commission, Ministry of Construction. (1998). Urban water supply pricing management methods. National Planning Commission, Ministry of Financing. (1993). Notice on collecting wastewater discharge fee. NDPC. (2000). Guidance on reform water pricing to promote water saving. NDPC. (2002). Opinions on some problems of reform agricultural water use price. NDPC, et al. (1999). Notice to strengthen wastewater treatment fee collection and develop urban wastewater discharge and centralized treatment mechanism. NDPC, et al. (2002a). Further promoting urban water supply pricing reform and improving water pricing formulation mechanism. NDPC, et al. (2002b). Opinions on promoting industrialization of urban wastewater and waste treatment sector. NDPC, et al. (2003). Management Methods of Pollutant Discharge Fee Rate. NDRC, Ministry of Construction. (2004). Urban water supply tariff management methods. NDRC, et al. (2008). Water resources fee collection, use and management methods. NDRC, et al. (2013) Notice on some issues on water resources fee collection standard. NDRC, et al. (2014a). Pilot to deepen comprehensive agricultural water pricing reform. NDRC, et al. (2014b). Notice of some issues to regulate pollutant discharge fee collection standard. NDRC, et al. (2015). Notice of some issues in formulating and regulating wastewater collection fee standards. NDRC & MOHURD. (2009). Notice on improving related issues of urban water supply tariff management.

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NDRC & MOHURD. (2013). Guidance on fastening developing and improving urban household block tariff system. NDRC, MWR. (2003). Management methods for water supply tariff from hydraulic engineering. NDRC, et al. (2017). Notice to firmly promote comprehensive agricultural water pricing reform. NDRC. (2018). Opinions on innovating and improving pricing mechanism to promote green development. Niu, M. (1995). Deepening and fastening water sector reform. Economy Sciences, 3, 6. OECD. (2010). Pricing water resources and water and sanitation services. Office of the State Council. (1995). Notice on some issues on collecting water resources fee. Office of the State Council. (2004). Notice to promote water pricing reform to promote water saving and water resources protection. Qian, Z. (1981). Answers to CCTV reporters, Oct. 18, 1980. China Water Resources, 1, 3–4. Rogers, P., et al. (2002). Water is an economic good: How to use prices to promote equity, efficiency, and sustainability. Water Policy, 4, 1–17. SEPA, et al. (1991). Notice to regulate exceeding-standard wastewater discharge fee collection standard and unify exceeding-standard noise discharge fee collection standard. Shen, D., et al. (2015) Introducing new mechanisms into water pricing reforms in China. In A. Dinar, et al. (Ed.), Water pricing experiences and innovations (pp. 343–358). Springer. Shen, D., & Guna, A. (2018). Water pollutant discharge fee system in China. China Policy, 1(1), 1–24. Standing Committee of NPC. (1979). Environmental Protection Law. Standing Committee of NPC. (1984). Water Pollution Control Law. Standing Committee of NPC. (1989). Environmental Protection Law. Standing Committee of NPC. (1996). Water Pollution Control Law. Standing Committee of NPC. (2008). Water Pollution Control Law. Standing Committee of NPC. (2014). Environmental Protection Law. Standing Committee of Gansu Provincial People’s Congress. (2007). Gansu provincial regulations on water resources management in Shiyang riverbasin. Standing Committee of Shanxi Provincial People’s Congress. (1982). Water resources management regulation of Shanxi province. State Council. (1982). Temporary methods for collecting pollutant discharge fee. State Council. (1984). Notice of positively promoting urban water saving. State Council. (1985). Water tariff formulation, collection and management for hydraulic engineering. State Council. (1994). Urban water supply regulation. State Council. (2000). Notice to strengthen urban water supply, water saving and water pollution control. State Council. (2003). Pollutant discharge fee collection and use management regulation. State Council. (2006). Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection. State Council. (2011). Decision on speeding water sector development and reform. State Council. (2013). Urban drainage and wastewater treatment regulation. State Council. (2015). Some opinions to promote pricing mechanism reform. Sun, J. (2014). Speech on meeting of deepening small-scale hydraulic engineering management institutional reform. Tianjin Municipal Government. (1987). Tianjin groundwater resources management temporary methods. Wu, G., & Tang, D. (1991). Adjustment of the standard of pollutant discharge fee is necessary for environmental control. Environment and Sustainable Development, 4(3), 46–49. Zhengzhou People’s Government. (2005). Water pricing reform plan. Zhou, W. (2010). The investigation report on water resources and pricing in China. Pricing in China, 3, 19–23.

Chapter 8

Groundwater Management

Abstract This chapter discusses the groundwater development and problems, management instruments, and institutions in China. China is facing critical groundwater problems, including overdraft, declining water levels, and water quality degradation, resulting in land subsidence and seawater intrusion. At the same time, the current scattered groundwater management system, mainly consisting of development and protection planning, groundwater function zones, FDZs and RDZs, water resources justification reports for construction projects, water abstraction permitting, planned water use and water resources fees, cannot provide an effective and efficient solution. The lack of integrated systems, coordinated management institutions, quality management arrangements, institutional capacity, and coordinated relationships all worsen the current groundwater problems. Thus, China should urgently adopt the aquifermanagement concept, develop a comprehensive groundwater management system, reorganize current groundwater-related management systems, reform abstraction permitting, develop a groundwater quality management system, and build the capacity of its managers. Keywords Groundwater management · FDZ and RDZ · Scattered management system · Aquifer management With stable yields, better water quality, and proximity to use locations, groundwater is widely developed worldwide. It differs from surface water because of the contrasting physical and chemical environment (GWMATE 2006). The sustainable management of groundwater resources has become a global issue. In most countries, groundwater is a very important water source, and it has been extensively exploited in areas with water shortages, such as India and Pakistan. However, severe water and environmental problems are a very common consequence of overdrafting such groundwater resources. Moreover, considering the uncertain consequences of development, strong restrictions are applied in some countries, such as in the Great Artesian Basin in Australia (Queensland Government 2006). The chapter is based on Shen, D. ( 2015) Groundwater management in China. Water policy, 17(1): 61–82. © The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_8

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8 Groundwater Management

China is a country with serious water shortages. Groundwater, particularly in northern China, is a highly important source for guaranteeing drinking water supply and facilitating social and economic development and ecological protection. In recent decades, groundwater has provided about 20% of China’s water supply (MWR 1998– 2018). With increasing demand on exploration, managing groundwater is becoming a critical issue in China, which has undertaken great efforts to develop a sound groundwater resources management system.

8.1 Groundwater Resources and Development in China 8.1.1 Groundwater Resources Regardless of assessment timing and methods, China has two sets of groundwater resources data from the MWR and the geological department, respectively. The MLR is responsible for groundwater resources from a mineral resources perspective, while the MWR handles the water resources aspects. The groundwater resources assessed by the MWR are discussed further in Sect. 1.3.2. The groundwater resources managed by the MLR are as follows (Table 8.1). According to the 2000–2002 national groundwater resources assessment, China has annual average groundwater resources of 883.7 billion m3 , or about one-third of the country’s total freshwater resources. Of this amount, 656.1 billion m3 is in the mountainous areas and 227.6 billion m3 is in the plains. The annual average exploitable fresh groundwater volume is 352.7 billion m3 , of which the mountainous areas provide 196.6 billion m3 , while the plains contribute 156.1 billion m3 . In addition, there are 27.7 billion m3 of brackish groundwater resources with salinity between 1 and 3 g/l and 12.1 billion m3 of semi-saline groundwater resources with salinity between 3 and 5 g/l. Southern China, with 69% of freshwater resources and 56% of the national total exploitable resources, has more groundwater resources than northern China (MLR 2010). According to the aquifer and storage volume, the natural pore groundwater is 281 billion m3 , with an exploitable volume of 168.6 billion m3 ; the natural cavern groundwater resources amount to 211.6 billion m3 , with an exploitable volume of 87 billion m3 ; and the crevice groundwater resources are 430.8 billion m3 , with an exploitable volume of 97.1 billion m3 (Table 8.2).

8.1.2 Groundwater Development and Use in China Groundwater is an important source in northern China and many cities. Before the mid-1960s, groundwater was less developed. However, by the end of the 1970s, groundwater was widely developed in China to combat salinity.

8.1 Groundwater Resources and Development in China

177

Table 8.1 Groundwater resources in China. Unit billion m3 Provinces

Natural recharge resources =43,200 m3 /day

78.4%

0.3%

High flow season (Apr–Sep): % time flow >=112,300 m3 /day

74%

1.6%

Low flow pulse (Oct–Mar): No. of days >1,728,000 m3

100

6

High flow pulse (April): No. of 2 consecutive days >1,728,000 m3

13

0

High flow pulse (May–June): No. of 2 consecutive days >1,728,000 m3

108

2

Low flow season (Oct–Jan): % time flow >=112,300 m3 /day

74.5%

42%

High flow season (Apr–Sep): % time flow >=345,600 m3 /day

71.7%

48.5%

Low flow pulse (Oct–Mar): No. of 2 consecutive days >4,579,000 m3

19

8

High flow pulse (April): No. of 2 consecutive days >4,579,000 m3

15

6

Low flow season (Oct–Jan): % time flow >=587,500 m3 /day

76%

58.5%

High flow season (Apr–Sep): % time flow >=1,918,100 m3 /day

72%

59.9%

Low flow pulse (Oct–Mar): No. of 4 consecutive days >6,393,600 m3

68

50

High flow pulse (Apr–Sep): No. of 5 consecutive days >1,0627,000 m3

33

31

Reach 1: Zhu Creek just downstream of Zhuxi Reservoir

Reach 2: Downstream end of Zhu Creek

Reach 3: Yong’an Creek upstream of Shifeng Creek

Source WET (2007) Permission granted by WET project subject to proper citation

The impacts on flows further downstream are less drastic due to inflows from other parts of the catchment. However, there are still major impacts on baseflows and the number of pulses. Bankfull and flooding events are generally not affected due to the size of these events. The consequences for Zhu Creek and, to a lesser extent, Yong’an Creek are likely to include losses of habitat (especially deep pools, pulses to trigger spawning events, and migratory paths; flows to maintain riparian vegetation and flows to maintain geomorphic processes, which are important for maintaining both water quality and channel form). These changes are likely to have a major impact on fish and fisheries within Zhu Creek and downstream of it.

392

17 Environmental Flow Definition and Management: A Case Study … S1 S2

1000m3/day

S3

Fig. 17.8 Benefits of providing environmental flows. Source WET (2007). Permission granted by WET project subject to proper citation

From Reach 3 (Yong’an Creek) downstream to the river mouth, the greatest threat from alteration to the flow regime is likely to come from the cumulative impacts of development.

17.3.5.2

Effects of the Environmental Flow Rules

S3, S5, and S10 test the impact of the introduction of environmental flow rules in accordance with the recommendations made from the environmental assessment. The environmental flow rules specified were only to achieve the recommended flows in Reaches 1 and 2. It was not possible to set rules to achieve all of the flows required in the lower reaches because the pilot study and the IQQM were focused on management arrangements in Zhu Creek, which has a limited influence on flows in the trunk stream. However, the release of additional water into Zhu Creek will still produce some improvement in flows in the trunk stream. The benefits of providing these flows are apparent from Fig. 17.8. The environmental flows rules would ensure that stream flows at this location closely mimic natural baseflows. The environmental flow rules mean that the recommended flows will be achieved in Reaches 1 and 2. Consequently, there should be a high level of confidence that incorporating these environmental flow rules within a water resources allocation plan would protect the ecological health of Zhu Creek. There are, however, benefits for the trunk stream as well. These benefits are less far downstream from Zhu Creek due to the overriding impact of other factors.

17.3 Environmental Flow Assessment and Water Resources…

393

The benefits to the trunk stream of providing for environmental flows (from Zhuxi Reservoir) can be seen by analyzing the mean annual flows at the reporting nodes under each of the scenarios (Table 17.14). Providing environmental flows would, however, impact the reliability of water supply (Table 17.15). • It would reduce the daily reliability of supply for urban/industrial users from Zhuxi Reservoir from 100 to 97%; this is still within the target range of urban water reliability under the Taizhou water resources comprehensive plan. • It would reduce the average annual supply (as a percentage of demand) for irrigation from Zhuxi Reservoir from 100 to 95%; this translates into a reduction in the annual reliability of these supplies (i.e., the proportion of years in which irrigators would receive their full demands) from 100 to 67%. • It would reduce the reliability of urban/industrial supplies from Changtan Reservoir as follows: – The average annual supply reduces by between 1 and 3% of the sector’s demands. – The daily reliability reduces considerably from 82 to 74% unless the Changtan Reservoir operation rules are also changed, in which case the reduction is relatively minor, dropping from 96 to 93%. • The annual average supply for irrigation from Changtan Reservoir would be between 5 and 7% lower to fall between 60 and 67%. The impact of the provision of environmental flows on supply from Changtan Reservoir can also be understood by considering the volume of water piped from Zhuxi Reservoir to Changtan Reservoir. Under the planned pipeline operational rules, water is only transferred to Changtan Reservoir depending on the water level in Zhuxi Reservoir (relative to Changtan Reservoir). The provision of environmental flows reduces the times when the prerequisites for transfer are met, which in turn reduces the annual volume transferred by about 40% (Table 17.15). The provision of these flows, should they be adopted and included in a water resources allocation plan, would require amending the operational rules for Zhuxi Reservoir. 17.3.5.3

Effects of Changing the Changtan Reservoir Operation Rules

The modified Changtan Reservoir operation rules (applied in S4, S5, and S10) involve lowering the threshold at which water for urban supplies must be restricted. Under the currently planned rules, urban water supply is restricted, and irrigation water supply is reduced to zero when the water level falls to 21.05 m (72 million m3 ). The modified arrangements involve lowering this restriction threshold to 15.05 m (12 million m3 ) for urban supplies, but they do not change the threshold for irrigation supplies; this allows urban/industrial users to be supplied from what would otherwise be “dead” storage.

L4 Volume (1,000 m3 )

Proportion of existing

L3 Volume (1,000 m3 )

Proportion of existing

L2 Volume (1,000 m3 ) 72.8%

83.3%

366,621

67.2%

118,724

S3

72.8%

320,552

41.6%

73,447

S4

83.3%

366,620

67.2%

118,724

S5

72.8%

320,485

41.5%

73,380

S6

99.4%

437,634

100.0%

176,648

S7

73.0%

321,296

42.0%

74,191

S8

69.5%

305,806

32.8%

57,870

S9

83.3%

366,621

67.2%

118,724

S10

79.2%

81.6%

79.2%

81.6%

78.4%

99.9%

87.0%

78.5%

80.8%

(continued)

2,279,866 1,862,364 1,908,480 1,862,431 1,908,480 1,846,473 2,268,952 2,012,902 1,847,686 1,892,594

100.0%

1,930,895 1,530,037 1,576,172 1,530,104 1,576,172 1,514,151 1,928,341 1,680,596 1,515,358 1,560,287

100.0%

320,485

41.5%

100.0%

440,187

73,380

S2

176,648

S1

Item Scenario

Flow L1 Volume reporting (1,000 m3 ) location Proportion of existing

Reach

Table 17.14 Mean annual flows at reporting nodes

394 17 Environmental Flow Definition and Management: A Case Study …

Proportion of existing

L6 Volume (1,000 m3 )

Proportion of existing

L5 Volume (1,000 m3 )

Proportion of existing

81.7%

S2 83.7%

S3 81.7%

S4 83.7%

S5 81.0%

S6 99.5%

S7 88.3%

S8 81.0%

S9

83.0%

S10

89.0%

90.2%

89.0%

90.2%

88.5%

99.7%

92.9%

88.6%

89.8%

100.0%

89.8%

90.4%

89.7%

90.2%

89.5%

97.4%

91.6%

89.6%

89.8%

5,006,355 4,497,658 4,524,884 4,488,956 4,513,634 4,481,767 4,876,989 4,584,517 4,487,916 4,497,748

100.0%

3,779,532 3,362,031 3,408,146 3,362,098 3,4081,46 3,346,140 3,768,618 3,512,568 3,347,352 3,392,260

100.0%

S1

Item Scenario

Source WET (2007) Permission granted by WET project subject to proper citation

Reach

Table 17.14 (continued)

17.3 Environmental Flow Assessment and Water Resources… 395

Zhuxi

Urban/Industrial

Changtan

Urban/Industrial

Irrigation

Purpose

Location

13,446 100% 97%

Average annual supply (% of demand)

Daily reliability (% of days full daily demand met)

0%

Annual reliability (% of years full annual demand met)

Average annual supply (1,000 m3 )

69%

Average annual supply (% of demand)

82%

Daily reliability (% of days full daily demand met) 173,845

96%

Average annual supply (% of demand)

Average annual supply (1,000 m3 )

506,468

S2

Scenario

Average annual supply (1,000 m3 )

Item

Table 17.15 Performance criteria—supply reliabilities

100%

100%

13,514

0%

64%

160,901

74%

93%

493,072

S3

97%

100%

13,446

0%

67%

167,654

96%

98%

520,919

S4

100%

100%

13,514

0%

60%

151,089

93%

97%

513,409

S5

97%

100%

13,446

0%

69%

173,845

82%

96%

506,468

S6

100%

100%

8,757

0%

61%

177,006

92%

98%

274,851

S7

97%

100%

13,446

0%

54%

135,368

63%

87%

458,605

S8

97%

100%

13,451

0%

70%

175,672

85%

97%

515,192

S9

(continued)

100%

100%

13,514

0%

60%

151,089

93%

97%

513,409

S10

396 17 Environmental Flow Definition and Management: A Case Study …

11,247 100% 100%

Average annual supply (1,000 m3 )

Average annual supply (% of demand)

Annual reliability (% of years full annual demand met)

S2

Irrigation

Scenario

Item

Purpose

Source WET (2007) Permission granted by WET project subject to proper citation

Location

Table 17.15 (continued)

67%

95%

10,645

S3

100%

100%

11,247

S4

67%

95%

10,645

S5

100%

100%

11,247

S6

100%

100%

11,255

S7

100%

100%

11,247

S8

63%

95%

10,662

S9

67%

95%

10,645

S10

17.3 Environmental Flow Assessment and Water Resources… 397

398

17 Environmental Flow Definition and Management: A Case Study …

Table 17.15 Water transfer from Zhuxi to Changtan

Scenario

Average annual transfer Volume (1,000 m3 )

% of maximum

S2

106,493

80.4

S3

61,356

46.3

S4

106,424

80.3

S5

61,355

46.3

S6

106,493

80.4

S7

–

S8

105,676

79.8

S9

121,887

92.0

S10

61,355

46.3

S11

73,451

–

55.4 m3

NB: Maximum supply rate is 132,495,000 per annum Source WET (2007) Permission granted by WET project subject to proper citation

These scenarios were considered to attempt to improve the reliability of urban/industrial supplies from Changtan Reservoir. As per Table 17.15, under the 2020 base case (S2), average annual supplies would be about 96% of demand, but the daily reliability would only be about 82%. The changed operating arrangements would significantly improve the reliability of supply to urban/industrial users. Under each of these modified scenarios, the daily reliability would rise to 93–96%, depending on other variables. Making this change would reduce average annual supply to irrigation by between 2 and 7% of demand. There are no consequences for users supplied directly from Zhuxi Reservoir. 17.3.5.4

Effects of Changing the Zhuxi-Changtan Pipeline Operation Rules

Under planned operating rules for Zhuxi Reservoir, no water will be transferred to Changtan Reservoir when the Zhuxi Reservoir level falls below 130 m (56.1 million m3 ). The modified arrangements in Scenario 9 involve lowering this threshold to 120 m (30.64 million m3 ). This scenario (S9) was considered in an attempt to improve the reliabilities of supply for users from Changtan Reservoir. Table 17.15 shows that these modified arrangements would have minor benefits for users supplied from Changtan Reservoir, increasing the reliability of achieving average annual demand by approximately 1%. These changes would not impact urban/industrial users supplied from Zhuxi Reservoir. However, the average annual irrigation supplies would reduce in volume and annual reliability. The relative values of these benefits and costs on the different users would need to be evaluated to determine whether altering the pipeline operating rules in this way is appropriate.

17.3 Environmental Flow Assessment and Water Resources…

17.3.5.5

399

Cumulative Effects of Development

Two scenarios were modeled to demonstrate the cumulative effects of development on flows downstream. These scenarios both contemplate an additional (hypothetical) reservoir being constructed in the Yong’an catchment upstream of the point where Zhu Creek meets Yong’an Creek. The modeling assumes identical levels of local demand as those from Zhuxi Reservoir but, significantly, does not involve the transfer of water out of the catchment (i.e., it is assumed this reservoir only supplies relatively small local demands). Scenario 6 is based on the proposed 2020 arrangements. As such, the results for this scenario should be compared to those for the current planned development (S2). Scenario 10 is based on the 2020 arrangements with modified Changtan Reservoir operating rules and the provision of environmental flows. The model results for this scenario should be compared to the results from Scenario 5. This second scenario represents the most extreme variation from the arrangements proposed in the Taizhou comprehensive plan considered and modeled as part of the pilot study. As the new hypothetical reservoir is not connected to the Zhu Creek and the Yongning systems, there are no implications for supply from the Zhuxi or Changtan Reservoirs, nor for flows within Zhu Creek. Therefore, the comparison of modeling results only needs to focus on flows in Yong’an Creek, Ling River, and Jiao River. Figure 17.9 shows the impact of the additional reservoir on mean annual flows. While the impact is relatively small, it would be greater if the additional reservoir were used to supplement supplies in other parts of Taizhou as well as serve local demands. The key question is at which point these cumulative effects have an unacceptable impact on the environment, which needs to be considered in the context of the specific environmental flow objectives of the river. The environmental assessment undertaken does not allow for a definitive recommendation on the threshold at which these impacts will mean an unacceptable level of ecological risk. The most important element to recognize is that there is a point at which development will impact the environment, and, even where that threshold is unknown, resource managers should be aware of the risk, monitor trends within the relevant indicators for the flow, and—if possible—set flow objectives which must be achieved.

17.3.5.6

Effects of not Proceeding with Planned Developments

The first (S7) assumed Zhuxi Reservoir was not in fact built by 2010. The model results indicate that the predicted 2010 demands could generally be met by existing infrastructure, subject to the irrigation demands from Changtan Reservoir being reduced to the 2020 demand levels. All users on Zhu Creek would receive 100% of their demands in 2010, despite there being no reservoir to supplement their supplies. Urban/industrial users from

400

17 Environmental Flow Definition and Management: A Case Study …

S5

S10

89.0% 88.5%

90.0% 87.5%

90.2% 89.8%

S6

89.8% 89.5%

S2

90.2% 89.8%

92.5%

77.5%

81.7% 81.0%

80.0%

81.6% 80.8%

82.5%

83.7% 83.0%

85.0%

79.2% 78.4%

Proportion of existing mean annual flow

95.0%

75.0% L3

L4

L5

L6

Flow reporting location Fig. 17.9 Changes to mean annual flows at key reporting locations. Source WET (2007). Permission granted by WET project subject to proper citation

Changtan Reservoir would have a greater daily reliability and average annual supply (relative to demand) than they would in 2020 under the currently planned levels of development. However, on average, irrigators supplied from Changtan Reservoir would only receive 61% of their demands. This is largely due to the predicted irrigation demand pattern over the coming decades. Agricultural water use is predicted to increase by about 7% by 2010 before returning to existing levels by 2020. Only in the subsequent 10 years are agricultural demands predicted to drop below current levels. Should certain additional efforts be introduced to limit the increase in use by the agricultural sector and maintain demands at existing levels, irrigators supplied from Changtan Reservoir would receive an average annual supply of over 70% of this level. This situation would be comparable to the level of reliability these users would have in 2020 under the currently planned scenario. These results indicate that the construction of Zhuxi Reservoir could be delayed until a later stage. Scenario 8 modeled the construction and operation of all planned development by 2020 except for the pipeline to transfer water from Shisandu Reservoir to Zhuxi Reservoir; that is, Shisandu Reservoir would supply local demands only.

17.3 Environmental Flow Assessment and Water Resources…

401

Under this scenario, users of water from Zhuxi Reservoir would receive the same reliability of supply as they would if the pipeline from Shisandu Reservoir was included. The average annual volume of water supplied from Changtan Reservoir would, however, be significantly lower, which would substantially reduce the reliability of supplies received by both urban/industrial and agricultural users. Determining whether infrastructure operating rules under this scenario could be modified to improve supply reliabilities would require further modeling work. However, it is likely that any such modifications would have consequences for other users, such as those supplied from Zhuxi Reservoir. Consequently, transferring water via a pipeline from Shisandu Reservoir to Zhuxi Reservoir appears necessary to ensure the predicted 2020 demands for water from Changtan Reservoir can be met.

17.3.5.7

Effects of Sub-Optimal Environmental Flows

The last scenario (S11) that was developed was designed to demonstrate a “trade-off” of certain environmental outcomes in favor of improved supply reliabilities. As shown above, the provision of the recommended environmental flows would impact supply reliability for various users, particularly urban/industrial users supplied from Changtan Reservoir. These users would normally expect to receive a daily reliability of at least 95%. This level is not achieved under any of the scenarios where all the recommended environmental flows are provided (Fig. 17.10). This final scenario was developed to attempt to raise the reliability of urban/industrial supplies from Changtan Reservoir while still providing some of the critical environmental flows. This required revisiting the environmental flows assessment and recommendations to ideate alternative, “sub-optimal” environmental flow rules. Reducing the level of environmental flows requires prioritization of the identified assets and objectives to determine which of the recommended flows can be reduced or ignored. It must be recognized that the sub-optimal environmental flow option represents a departure from the recommended flow regime, so it carries a higher risk that the identified assets will not be protected. Accepting a higher risk is a management decision, not a scientific one. The supply reliabilities for users from the Changtan and Zhuxi Reservoirs under the recommended and sub-optimal environmental flow options are compared in Table 17.16. Both of the scenarios analyzed involve the changed operational arrangements for Changtan Reservoir to maximize the supply reliabilities for urban/industrial users. The reduced level of environmental flows has the following impacts: (1) average annual reliability for urban/industrial users supplied from Changtan Reservoir does not change materially; (2) there is a significant increase in the average annual supply for irrigation users from Changtan Reservoir; (3) urban/industrial users supplied from Zhuxi Reservoir continue to receive 100% of their demands; and (4) the reliability of supply for irrigation users from Zhuxi Reservoir increases substantially. Under the

402

17 Environmental Flow Definition and Management: A Case Study … 100.0% 95.0%

Daily reliability

90.0% 85.0% 80.0% 75.0% 70.0% 65.0% 60.0% 55.0% 50.0% S2

S4

S6

S7

S8

Without e-flows

S9

S3

S5

S10

With e-flows

Scenario Fig. 17.10 Daily reliabilities under modeled scenarios for urban/industrial users supplied from Changtan Reservoir (with comparison to the target of 95%). Source WET (2007). Permission granted by WET project subject to proper citation

alternative environmental flows option, these users would be the biggest beneficiaries, receiving their full demands every year.

17.3.5.8

Key Findings

The key messages can be summarized as follows: • Generally, the 2010 demands could be met from within existing supplies, subject to the irrigation demands from Changtan Reservoir being reduced to the 2020 demand levels. This would require more aggressive efficiency measures being promoted within the agricultural industry. Zhuxi Reservoir will, however, be required by 2020. • The transfer of water from Shisandu Reservoir to Zhuxi Reservoir is not necessary to meet the 2020 demands on Zhu Creek. However, it is necessary to ensure that supplies can meet the 2020 demands from Changtan Reservoir. • The current proposed arrangements will not achieve acceptable levels of supply reliability for users supplied from Changtan Reservoir.

17.3 Environmental Flow Assessment and Water Resources…

403

Table 17.16 Supply reliabilities under the recommended and alternative environmental flows options Location

Purpose

Item

Scenario S5

Changtan

Urban/Industrial

Irrigation

Zhuxi

Urban/Industrial

Irrigation

Average annual supply (1,000

m3 )

S11

513,409

515,045

Average annual supply (% of demand)

97%

97%

Daily reliability (% of days full daily demand met)

93%

93%

Average annual supply (1000 m3 )

151,089

162,024

Average annual supply (% of demand)

60%

65%

Annual reliability (% of years full annual demand met)

0%

0%

Average annual supply (1000 m3 )

13,514

13,513

Average annual supply (% of demand)

100%

100%

Daily reliability (% of days full daily demand met)

100%

100%

Average annual supply (1000 m3 )

10,645

11,258

Average annual supply (% of demand)

95%

100%

Annual reliability (% of years full annual demand met)

67%

100%

Source WET (2007) Permission granted by WET project subject to proper citation

• Lowering the restriction threshold for urban/industrial water supplies from Changtan Reservoir would significantly improve the urban/industrial supply reliability, with only a small reduction in annual reliability for irrigators. • The planned 2020 developments and infrastructure operating rules would have a major impact on environmentally important flows on Zhu Creek as well as lesser impacts further down the system in the Jiao River estuary. • Adopting the recommended environmental flow rules would produce a significant positive impact with no consequence for urban/industrial supplies from Zhuxi Reservoir, but it would cause various reductions in the reliability of irrigation supplies from Zhuxi Reservoir and all supplies from Changtan Reservoir. These rules would significantly reduce the annual volume of water transferred from Zhuxi Reservoir to Changtan Reservoir. The adoption of the environmental flow recommendations would require the operational rules for Zhuxi Reservoir to be redesigned. • Alternative, sub-optimal environmental flow rules would improve the reliability of supplies for irrigation users within the Jiao River Basin but not provide much benefit for urban/industrial users. These rules would increase the risk of not achieving environmental outcomes.

404

17 Environmental Flow Definition and Management: A Case Study …

17.3.6 Recommended Water Resources Allocation Plan Scenario modeling allows resource managers to determine the likely outcomes of different management arrangements. Having decided on an acceptable scenario—in terms of the management arrangements and the predicted consequences of those arrangements—the management arrangements should be converted into a regulation in the form of a water resources allocation plan. A water resources allocation plan is a regulatory tool that should set the outcomes sought for the basin, including sustainable levels of water abstraction and identifying the regions or groups entitled to abstract that water (i.e., the cap), the required reliability for the volumes to be supplied, the desired environmental flows and the operational and sharing rules to achieve the above requirements. Scenario 11 delineates the current proposed 2020 arrangements with the modifications of the “sub-optimal” environmental flow rules and the supply rules from Changtan Reservoir. (1) Outcomes for the water resources allocation plan The water resources allocation plan should state its broad desired outcomes. For Scenario 11, these would primarily be • To provide certainty to water users by protecting the reliability of their supply by ensuring that – urban and industrial users have a reliability of supply greater than X%. – agricultural users have a reliability of supply greater than Y%. • To maintain the environmental flows necessary to sustain fish and fisheries within the basin, by ensuring that – habitats, water quality, riparian vegetation, and natural geomorphic processes are protected. – flows mimic the natural flow pattern to the greatest possible extent, particularly with respect to low flows and pulses. (2) Setting water abstraction caps The water resources allocation plan would set caps on total annual abstractions for each reservoir and the reaches downstream. The cap would also specify the sectors that the volume would be available to. • The total cap on abstractions from Changtan Reservoir would be 664.498 million m3 , comprising – 513.409 million m3 for urban/industrial users. – 151.089 million m3 for irrigation users. • The total cap on abstractions from Zhuxi Reservoir would be 24.159 million m3 , comprising

17.3 Environmental Flow Assessment and Water Resources…

405

– 13.514 million m3 for urban/industrial users. – 10.645 million m3 for irrigation users. (3) Setting water-sharing rules There will be periods of water shortage when users will not receive 100% of the entitlements under their permits. To manage these situations fairly, water-sharing rules need to be defined in the water resources allocation plan. These are the rules that determine the proportion of available water that different groups of users will receive during shortages. The water-sharing rules for the current example would principally involve the rules that determine the point at which different groups will not be supplied. The details of this shall be set by the operational arrangements (e.g., release rules) for the Zhuxi and Changtan Reservoirs. (4) Setting reservoir release rules Reservoir release rules need to be clearly defined in a water resources allocation plan. These rules ensure that the infrastructure operator has clear guidance on what is required in operating the reservoir to ensure that the plan’s supply and environmental outcomes are achieved. Operational rules to be set in the water resources allocation plan for Zhuxi reservoir would include. • No water is to be transferred to Changtan Reservoir when the Zhuxi Reservoir level falls below 130 m (56.1 million m3 ). • Water supply for irrigation demands would cease when the dam water level falls below 122 m (34.82 million m3 ). • Hydropower stations would cease operations when the dam water level falls below 120 m (30.64 million m3 ). • Water supply for urban demand would continue until the dam water level reaches the inactive water level of 100 m (5.14 million m3 ). Similarly, the modified operating arrangements for Changtan Reservoir under Scenario 11 would provide the following release rules: • When the water level falls to 15.05 m (12 million m3 ), urban/industrial supplies are to be restricted by releasing water at a rate of 3 m3 per s (259,000 m3 per day). • When the water level is between 21.05 m (72 million m3 ) and 23.05 m (104 million m3 ), the maximum irrigation release is restricted to 12 m3 per s (1 million m3 per day). • When the water level falls to 21.05 m (72 million m3 ), irrigation water supply is reduced to zero. • The hydropower station is to cease operations when the water level falls below 23.05 m (104 million m3 ). Between 23.05 and 24.05 m, the maximum release for hydropower is restricted to 25 m3 per s (2.16 million m3 per day). Between 24.05 and 26.05 m, the maximum release is restricted to 50 m3 per s (4.3 million m3 per day).

406

17 Environmental Flow Definition and Management: A Case Study …

Table 17.17 Flows required for reach 1 under scenario 11 Component

Timing

Magnitude (m3 /s)

Frequency (per year)

Low flow

Oct–Mar

0.5

Continuous

High flow

Apr–Sep

1.0

Continuous

Low flow pulse

Oct–Dec; Jan–Mar

20

1 each period

1 day/period

High flow pulse

Apr

20

2

2

High flow pulse

May–Sep

20

2

1

Bankfull flow

Anytime

177

0.26

1

Duration (days at peak)

Source WET (2007) Permission granted by WET project subject to proper citation

The water resources allocation plan would also need to include specific environmental release rules. These would require that the reservoir operator release particular volumes of water for the environment at particular times. For example, these would include a requirement that the reservoir operator achieved the flows list in Table 17.17 for Reach 1. For low and high flows, the rules would also require that if the “natural flow” was less than the prescribed flow, only the natural level of flows would be required (e.g., if the inflows to the reservoir were only 0.3 m3 /s then the operator would only be required to release 0.3 m3 /s rather than the 0.5 m3 /s set out above.).

17.4 Summary This chapter deals with environmental flow management in China using a case study of the Jiaojiang River in Zhejiang Province. The chapter starts with a review of environmental flow research and management in China, followed by a case study combining environmental flow assessment before making recommendations on water resources planning. Flow regimes are critical for ecological health. Requirements for environmental flows should be considered during the water allocation process and flows should be set based on the best available science, recognizing the importance of maintaining natural variability. This chapter outlines a methodology for identifying ecological assets and determining the flows that are important to their health. A pilot study on the Jiaojiang River in Zhejiang Province was used to demonstrate the application of a water resources allocation planning approach, coupled with an environmental flow assessment. A detailed ecological assessment was completed, which formed the basis for identifying important ecological assets and their flow requirements. A water resources management model for part of the river was developed; this model was used to assess the ecological impacts of a proposed dam on the Zhu Creek. Different

17.4 Summary

407

scenarios were developed to show how different abstraction caps and operational rules could deliver different results in terms of supply reliability and achieving the identified environmental flow requirements. The results indicate that there is significant potential for improving both supply reliability and environmental outcomes through modified operational arrangements.

References Guan, W., et al. (2005). 3-D fluid-mud dynamics in the Jiaojiang Estuary China. Estuarine, Coastal and Shelf Science, 65, 747–762. Naiman, R., & Decamps, H. (1997). The ecology of interfaces: Riparian zones. Annual Review of Ecology and Systematics, 28, 621–658. Nilsson, C., & Svedmark, M. (2002). Basic principles and ecological consequences of changing water regimes: Riparian plant communities. Environmental Management, 30, 468–480. Taizhou Ocean and Fishery Bureau. (2006). Taizhou aquatic wildlife protection and management album. Taizhou WRB. (2007). Taizhou water resources bulletin 2006. Wang, X., et al. (2009) Approaches to providing and managing environmental flows in China. International Journal of Water Resources Development, 25(2), 283–300 WET. (2007). Water entitlements and trading project (WET Phase II) final report.

Chapter 18

Climatic Change and Water Resources

Abstract This chapter provides estimates and evidence of climate change’s impact on water resources in China. The chapter provides both observations and estimates of parameters in the hydrological cycle, including precipitation and water resources. Recommendations are also provided for managing climate change. Past evidence has shown that, jointly impacted by human activities and climate change, water resources have not shifted in humans’ favor. Current water issues are proof that all these changes have happened. In the future, although precipitation will increase in Northern China, surface runoff will decrease, which will further worsen the water shortage. Therefore, all aspects of water resources management, including infrastructure development, non-structural instruments, water saving, and new water sources development, shall be strengthened to solve the present water problems and prepare for future changes. In addition to a multi-adaptive management method, a high climate resilience and low-regrets development pathway shall be adopted in order to increase resilience and reduce potential risk. Keywords Climate change and water resources · Evidence and estimates · Hydrological elements and water resources · Countermeasures to climate change

18.1 Introduction The impact of water resources under climate change is tremendously complicated, based on the limited knowledge of the regimes of nature and the hydrological cycle. In general, under current understanding, water resources are jointly affected by the natural hydrological cycle and human activities through precipitation, runoff and evaporation changes, water resources management, and so on. China is a country with a large land area and diverse landscapes and climates. Due to the increasing demand for water from rapid economic development in the past 40 years and limited water resources, China is suffering from a water shortage. The chapter is based on Shen, D. (2010) Climate change and water resources: evidence and estimate in China. Current Science, 98(8): 1063–1068.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_18

409

410

18 Climatic Change and Water Resources

Combined with climate change, more uncertainties place pressure on water resources development and management in China. Therefore, climate change’s impact on water resources is still quite unpredictable. In order to determine the relationship between climate change and water resources, China has conducted substantial research in the past 40 years.

18.2 Activities Since the 1970s, the relationship between climate change and water resources has been of international interest. However, studies on water resources and climate change started in China only in the 1980s. In 1988, with the support of the Chinese Academy of Sciences and Natural Sciences Foundation of China, “Research on Trends and Impacts of Climate and Sea-Level Change” was launched, which consisted of one sub-project “Impacts of Global Warming and Climatic Change on Water Resources in Northwest and North China.” In the 1990s, and particularly in the late 1990s, research studies were expanded. In 1990, Fu (1990) finished the first master’s thesis in China on climatic change and water resources with the title of “Global Warming Effects on Regional Water Resources” in the Chinese Academy of Sciences. In 1990, Fu (1990) published a conceptual paper about the effects of global warming on water resources in Northern China. Zhang (1993) examined possible precipitation changes in China. In 1994, Deng (1994) finished the first doctoral thesis in China on climatic change and water resources with the title of “Hydrological Response to Climatic Change (Double Carbon Dioxide Concentration) in Tuo River.” In 1996, Shen (1996) finished a doctoral thesis about the effects of global warming on the middle route of China’s South-to-North Water Transfer Project. From 1991–1995, the sub-project “Impact of Climatic Change on Water Resources and its Adaptive Measures” was established under the key state scientific and technological project “Impact of Climatic Change on National Economy and Social Development and its Adaptive Measures,” which focused on response relationships between climate change and river basin hydrology in typical river basins. This study could be regarded as the first national assessment of climate change on water resources in China. From 1996–2000, the sub-project “Assessment Model Research of Climatic Abnormal Impact on Water Resources and Hydrological Cycle” was set up under the key state scientific and technological project “The Short-term Climate Forecast System in China.” After the 2000s, a substantial amount of research has been conducted in China. In addition to assessments of future climate change and water resources scenarios, many researchers studied historical climate change to identify past hydrological parameter variations, including precipitation, evaporation, and runoff in different parts of China. At the same time, with the improvement of modeling techniques, more and more detailed regional and river basin assessments have been conducted to predict future climate change scenarios. However, limited to the modeling techniques, such as downscaling and upscaling or coupling between regional circulation models (RCM)

18.2 Activities

411

and hydrological modeling, no significant breakthroughs were achieved comparable to those in the 1990s. From 2001–2005, the key state project “Impact Thresholds and Comprehensive Assessment of Climatic Abnormal on Freshwater Resources in China” was created by employing a distributed hydrological model to assess the impact of given climate change scenarios on water resources in China. The most extensive analysis was conducted through the National Water Resources Comprehensive Plan, which analyzed hydrological cycle changes between 1950 and 2000. From 2010–2014,the National Program on Key Basic Research Project (973 Program) funded two projects to research the impact of climate change on hydrological cycles and water security in the Yellow, Huai, and Hai River Basins and the Northwest arid regions, where the driving forces of flood and drought were studied. At present, China is paying increasing attention to the impact of climate change on water resources. MWR has listed climate change’s impact on water resources as a key research area. In 2008, MWR conducted the project “Climatic Change Impact on Water Security and its Adaptive Strategy in China.” In 2010, the Ministry of Science and Technology launched the Climate Change Special Projects, of which water resources are among the key topics. In reviewing these studies, two types of research methods are used: the future scenario method and the monitored data method. The future scenario method generally predicted the impact of future climate change on precipitation, which was then extended to consider runoff, water resources, and hydro-infrastructure operations. In developing the future scenarios, global circulation model (GCM) outputs were a priority for use in the 1980s and 1990s; GCM and RCM outputs were both used after the 2000s. Additionally, the use of the given scenarios is another option. The monitored data method is mainly applied after 2000, likely because that data series in China was relatively short if analyzed in the 1980s. Most of these studies used data series from 1950–2000. The monitored data used in these studies include precipitation, runoff, evaporation, and temperature. At the same time, the research has evolved to consider annual average parameters to hydrological extremes, including flooding and droughts. If considering regions with water shortages, Northern China and especially Northwest China is a research-heavy region. In addition to studies involving all of China, about 80% of studies were in Northwest China river basins, including the Xinjiang region and Gansu province. Some studies have concentrated on North China or the Yellow, Huai, and Hai River Basins. Very few studies consider South and East China.

18.3 Precipitation 18.3.1 Observations According to the water resources and development assessment conducted by MWR and completed in 2006, between two data series from 1956–1979 and 1980–2000,

412

18 Climatic Change and Water Resources

the national average annual precipitation did not change significantly. The period from 1980–2000 saw 3.7 mm more average annual precipitation than 1956–1979, but there was a significant variance between southern and northern China. Since the 1980s, precipitation in northern China is lower, especially in the Hai River Basin, the middle and lower reaches of the Yellow River Basin and the Shandong Peninsula. Comparing the 21-year series from 1980–2000 to the 24-year series from 1956–1979, the Hai River Basin had 10% less precipitation, the Yellow River Basin had 6.9% less and the Liao River Basin had 2.6% less. Meanwhile, precipitation in the Shandong Peninsula and Yi-Shu-Si Rivers decreased by 16% and 12%, respectively. Most regions in Southern China as well as parts of Northwest China and the northern area of Northeast China experienced more precipitation from 1980–2000. Precipitation increased in the Yangtze River Basin by 3%, in the river basins in Southeast China by 2.6%, in the Songhua River Basin by 4.6%, and in the river basins in Northwest China by 6.5% (Fig. 18.1, Table 18.1). From 1956 to 2000, in 10 major river basins, the rivers to the sea in northern China had a decrease in precipitation, particularly after the 1990s; the rivers in southern China had an increase in precipitation, particularly for the rivers south of the Yangtze River Basin. The rivers in Northwest China had a precipitation increase in all four seasons (Chen 2005). From 1961 to 2010, annual precipitation in China increased slightly but with variations among regions. The areas of the Qinghai-Tibet Plateau, northwestern China, and southern China increased, while precipitation in northeastern and northern China decreased (Chen et al. 2019).

1.37

-4.9 -6.9

-10

-0.5 -2.6

6.09

Rivers in Northwest China

-8

-2.4

Yangtze River Basin

-6

Songhua River Basin

-4

China

-2

Rivers in Southeast China

0

Rivers in Southwest China

0.16

4.60

Pearl River Basin

2

Huai River Basin

4

Yellow River Basin

4.54

Hai Riverbasin

6

Liao River Basin

% 8

-9.9 -12

Fig. 18.1 Precipitation comparison between 1956–1979 and 1980–2000 in China and different river basins. Sources General Institute of Water and Power Planning (2014) Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

459.7

666.8

859.6

Yellow River

Hetao-Longmen section

Sanmenxia-Huayuankou Section

Huai River

1,070.5

1,105.1

1,758.1

Yangtze River

Taihu lake

Rivers in Southeast China

732.5

464.4

South rivers of Hai River

Shandong Peninsula

579.8

North rivers of Hai River

909.1

506.5

Hai River

836.0

559.8

Liao

Yi-Shu-Si Rivers

472.6

Hun-Taizi River

Huai River

553.1

748.0

Liao river

496.6

1,066.3

365.7

526.0

198.6

215.1

237.6

225.1

156.9

53.5

83.2

97.5

80.1

90.5

64.6

242.3

138.9

130.2

1,080.8

433.2

531.6

223.1

290.9

313.9

291.9

171.3

63.1

93.6

143.2

118.6

132.4

101.7

282.0

167.6

150.1

1,804.6

1228.4

1100.9

613.1

739.1

912.3

815.5

639.0

406.8

432.2

511.7

458.8

501.3

469.7

740.6

538.6

519.4

1,108.6

502.7

573.4

93.7

154.8

239.0

191.9

112.6

34.9

71.1

50.4

49.6

53.3

61.6

214.8

124.2

147.0

Surface water resources

Precipitation

Total water resources

Precipitation

Surface water resources

1980–2000 (mm)

1956–1979 (mm)

Songhua River

Water resources zones

Table 18.1 Comparison of water resources between 1980–2000 and 1956– 1979 in China

1,122.8

545.9

579.1

148.4

235.7

311.4

263.2

134.1

50.5

84.9

100.6

94.1

99.0

99.9

251.4

152.9

168.4

Total water resources

2.6

11.2

2.8

4.0

37.5

9.0

−52.8

−14.7

−5.1

−16.3

−28.2

−4.2

0.6

−34.7

−28.0

−14.5

−7.0 −11.5

0.3

−48.3

−11.7

−11.6

−41.1 −38.2

−9.4

−4.7

−0.6 −10.4

−11.3

– 10.6

12.9

Surface water resources

−1.0

– 2.6

4.6

Precipitation

(continued)

3.9

26.0

8.9

−33.5

−19.0

−0.8

−9.8

−21.7

−19.9

−9.3

−29.7

−20.6

−25.3

−1.8

−10.8

– 8.8

12.2

Total water resources

Comparison between 1980–2000 and 1956–1979 (%)

18.3 Precipitation 413

157.7

329.8

1,203.6

Rivers in Northeast China

The Northern China

The Southern China 284.1

649.6

74.3

34.5

687.5

806.9

294.6

654.1

88.3

38.6

687.5

810.8

652.1

1219.6

329.0

167.9

1,079.0

1,543.7

292.1

679.8

71.4

35.4

680.3

826.1

303.4

684.2

86.5

39.4

680.3

828.5

Total water resources

Source General Institute of Water and Power Planning (2014) Permission granted by General Institute of Water and Power Planning on its website subject to proper citation

648.4

1,097.7

Rivers in Southwest China

China

1,544.3

Surface water resources

Precipitation

Total water resources

Precipitation

Surface water resources

1980–2000 (mm)

1956–1979 (mm)

Pearl River

Water resources zones

Table 18.1 (continued)

0.6

2.9

4.7

−3.9

−0.3 1.3

2.5

−1.0

−1.7 6.5

2.4

Surface water resources

0.0

Precipitation

3.0

4.6

−2.0

2.2

−1.0

2.2

Total water resources

Comparison between 1980–2000 and 1956–1979 (%)

414 18 Climatic Change and Water Resources

18.3 Precipitation

415

The following list details regional variations in precipitation. • In NCP from 1901–2006, precipitation data showed that at a 100-year scale, precipitation in most parts of the plain increased, while only a small part of Shandong Province showed decreased precipitation. In the past 50 years, most regions in the plain decreased at a rate of −5 mm/a, though parts of the northeast and western plain increased by a few mm. In the past 20 years, precipitation in the western and central parts of the plain increased but decreased significantly in the northeast, going down −5 mm/a and −10 mm/a in some regions (Rong and Luo 2009). Precipitation had been decreasing over the last 50 years in the Hai River Basin, but it began to increase after 2006 (Zai et al. 2009). In Hebei Province, annual precipitation decreased at a rate of 62 mm/10 a from 1956–2000 (Shao et al. 2008). In Qinhuangdao City, precipitation decreased by 18.3% from 1955 to 2005 (Zhang 2007). • According to data from six meteorological stations, precipitation underwent a slight increase in the Taihu Lake Basin from 1954 to 2006 (Huang and Xu 2009). In the Lanjiang River, Zhejiang Province, there was an increase in precipitation from 1961 to 2003, particularly during the 1990s (Kang et al. 2007). • In Meizhou, Guangdong Province, there was an increase in precipitation from 1953 to 2006 (Luo et al. 2007). • In Southwest China from 1961 to 2000, the western plateau region saw an increase in precipitation, while in the east there was a decrease, with the exception of Chongqing (Liu et al. 2007). In the past 50 years in Lhasa, Tibet, there was a slight decrease in precipitation at a rate of 17.8 mm/10 a in the past 30 years (Du et al. 2008a). In the Yamdok Tso Lake Basin in Tibet, precipitation significantly increased from 1981 to 2006 (Du et al. 2008b). Meanwhile, in the Yangtze River source region, precipitation increased during the 1960s and 1980s and decreased during the 1970s and 1990s (Liu et al. 2008). • In the Hanjiang River Basin in the past 50 years, precipitation shifted from higher rates in the 1980s to lower rates in the 1990s (Chen et al. 2006). In the upper stream of the Han River, annual precipitation has decreased by 119.6 mm in the past 50 years (Pu et al. 2009). • In the middle reach of the Yellow River Basin, precipitation was below average from 1970 to 1990 and above average from 2000 to 2007 (Yao et al. 2009). In the 1990s, precipitation decreased in the middle reach of the Yellow River (HeLong reach), with the average annual precipitation from 1991 to 2001 33.67 mm lower than that of 1957–1990 (Qu et al. 2008). In the Tao River Basin, annual precipitation decreased from 1951 to 2005 at a rate of 14.5 mm/10 a to 4.6 mm/10 a (Yao et al. 2008). In the South Gansu Plateau, precipitation decreased at a rate of 22.6 mm/10 a to 9.6 mm/10 a between 1957 and 2004 (Yao et al. 2007). In the Loess Plateau, from 1961 to 2003, precipitation significantly decreased after 1985 (Lin and Wang 2007). In Shaanxi Province, annual precipitation generally decreased between 1951 and 1998, with the 1990s seeing the largest decrease

416

18 Climatic Change and Water Resources

(Yang 2002). In the Yellow River source region, precipitation decreased from 1956 to 2003 (Wei et al. 2006); from 1961 to 2017, there was a slight increase and changes happened in 2002 (Ma et al. 2019). In Jinzhong, Shanxi Province, precipitation decreased at a rate of 35.9 mm/10 a (Ma et al. 2007). • In the Qilian Mountains, according to 50-year datasets from five meteorological stations above 2,800 m in altitude, precipitation in the mountains increased, with less precipitation in the 1960s and 1970s and more in the last 20 years. Precipitation increased more in the spring and summer, particularly in the western section of the mountains (Yin et al. 2009). In the Shiyang River Basin, annual average precipitation has increased 18.2 mm, with a percentage of 5.8% since 1951 (Huang et al. 2008; Li et al. 2008). In the Hei River Basin in Gansu Province, precipitation in the 1990s increased 18.5 mm compared to the 1950s and 6.5 mm compared to 1960–1990. Water resources in the 1990s decreased 260 million m3 compared to the 1950s and 40 million m3 in the 1990s compared to 1960–1990 (Zhang 2008). The nearby Hexi Corridor saw a significant increase in annual precipitation from 1960 to 2017 at a rate of 8.72 mm/10 a (Wang et al. 2020). • In Xinjiang Uygur Autonomous Region, data collected between 1951 and 2006 from 12 meteorological stations indicated that precipitation was less than average from the middle of the 1960s to the end of the 1980s, while after the 1990s precipitation has continuously increased (Cao et al. 2009). In the Yarkent River, Karakorm, precipitation generally increased from 1960 to 1990 (Sun et al. 2008). In North Xinjiang, according to datasets collected between 1951 and 2006 from five stations, precipitation began to increase in the early 1980s (Cao et al. 2008). In the Tianshan Mountains, there was a significant increase with 18.8 mm/10 a. In the Tarim River Basin, based on precipitation data from the past 50 years, precipitation showed a significant increase in the 1980s and 1990s, and the average annual precipitation showed an increase at a magnitude of 6.8 mm/10 a (Chen and Xu 2004; Jiang and Xia 2007). In the Irtysh River Basin, precipitation generally increased from 1948 to 1995 (Li 2008). In the Aksu River, precipitation increased from 1961 to 2000 (Zhang 2008). At the same time, several studies found that 1986 marked a shift toward an increase in rainfall and snow days as well as extremes in the Tianshan Mountains (PU et al. 2008; Tian et al. 2020). • In the Tao’er River Basin in the western side of Northeast China, precipitation increased from 1961–2000 (Jiang et al. 2009). On the right bank of the Nen River Basin, 1961–1982 was a period of less precipitation, while 1982–1999 was a period of increased precipitation that was then followed again by less precipitation (Yang et al. 2008). In Hulun Lake, precipitation decreased from 1961 to 2005 (Zhao et al. 2007). In summarizing regional precipitation changes in China, it could be concluded that in the past 50 years, annual precipitation increased in East China, South China, and the western part of Northeast China and West China. A significant increase in West China was observed, whereas the core area around North China—including

18.3 Precipitation

417

the area southeast of Northeast China, Shaanxi, and South Gansu—had decreased precipitation. Southeast China and Northeast China had stable precipitation rates (Ye et al. 2004).

18.3.2 Estimates Climate change will alter the distribution of water resources. It is estimated that in the future, climate change will significantly impact the hydrological cycle and spatial and temporal distributions of water resources in China. It will intensify annual and seasonal variations and increase the frequency of extreme hydrological events, such as floods and droughts. More particularly, global warming will accelerate the melting of glaciers in Western China, which will impact the runoff of rivers mainly supplied from glaciers. Global warming might increase the drying tendency in North China, deteriorate the water supply and cause conflict (Information Office of the State Council of the People’s Republic of China 2008). Under the continually warming climate, precipitation distribution will change. More water in northern China and less in southern China will alleviate the pressure of water resources in northern China. With global warming, precipitation in China will fluctuate before 2040. Beginning in 2015, northern China will experience more precipitation, while southern China will have less precipitation. After 2040, precipitation will significantly increase, with an 8–10% increase at the end of the twenty-first century. The greatest precipitation increase will occur in northern China, followed by Northeast China. Precipitation in southern China will decrease. This pattern is typical of precipitation under global warming conditions (that is, increased precipitation in middle and high latitudes and less in subtropical regions) (Gao et al. 2009). According to the results of the RCM from China’s National Assessment Report on Climate Change, average annual precipitation will increase under a double concentration of carbon dioxide in 2070. The greatest percentages of increase—over 20%— will occur in western China, covering areas from the western part of North China to Xinjiang. The eastern part of Guangdong Province, western part of Fujian Province, and northeast part of Guangxi Autonomous Region will be the areas with the largest percentage of precipitation. The center and downstream of the Yangtze River Basin will change less, with some areas increasing and some decreasing. The northern part of Northeast China will be the region with the greatest increase in precipitation, with about 20% in some areas. At the same time, the southern part of Northeast China and the northern part of North China will undergo decrease with by more than 10% in some areas. It should be pointed out that the modeled results are consistent with changes over the past decades. The average annual precipitation in China will increase by 12%, with increases of 6%, 19%, 6%, and 12% in spring, summer, autumn, and winter, respectively (Compiling group 2007).

418

18 Climatic Change and Water Resources

18.4 Water Resources 18.4.1 Observations In the past 60 years, land cover was quite different from the previous period; therefore, water resources evolution mechanisms have been changed. According to the National Water Resources Comprehensive Plan, comparing data series from 1980 to 2000 and 1956 to 1979 (representing 1970s land cover), precipitation changed very little for China as a whole, and surface water resources and total water resources increased somewhat. In Southern China, runoff and total water resources increased nearly 5%, while in Northern China, water resources decreased significantly, especially in the Yellow River Basin, Hai River Basin, and Liao River Basin. In the Hai River Basin, a 10% decrease in precipitation resulted in a 41% decrease in runoff and a 25% decrease in total water resources (Figs. 18.2 and 18.3). In the Shandong Peninsula of the Huai River Basin, a 16% decrease in precipitation resulted in a 51% decrease in runoff and a 34% decrease in total water resources (Table 18.1). From the 1950s to the 1990s, the runoff to the sea was reduced significantly in northern China, with 77% in the Hai River water resources zone, 70% in the Yellow River water resources zone, and 26% in the Huai River water resources zone. Natural runoff from the Yellow River reduced from 58 billion m3 between 1919 and 1975 to 53.5 billion m3

1.88

-1.

2.21 Rivers in Northwest China

Pearl River Basin

-4

-14.

5.95 Rivers in Southeast China

-14.

Yangtze River Basin

-10.

7.45

Rivers in Southwest China

Huai River Basin

-3

Yellow River Basin

-2

Songhua River Basin

-1

2.41 China

0

12.85

Hai River Basin

10

Liao River Basin

% 20

-40. -5

Fig. 18.2 Surface water resources comparison between 1956–1979 and 1980–2000 in China and different river basins. Source Shen (2010) Permission granted by Shen (2010) subject to proper citation

billion

18.4 Water Resources

419

30 25 20 15 10 5 0 1950

1960

1970

1980

South Rivers of Hai

1990

2000

2010

Year

North Rivers of Hai

Fig. 18.3 Into-sea runoff change during 1956–2000 in Hai River Basin. Source Shen (2010) Permission granted by Shen (2010) subject to proper citation

billion

between 1956 and 2000 and 46.1 billion m3 between 2000–2018 (Shen et al. 2020) (Fig. 18.4). The decrease in water resources in northern China was impacted by reduced precipitation and landscape changes caused by human activities. In general, a reduction in precipitation is the main factor for the decrease, but landscape changes should not be neglected as they have resulted in changes to the rainfall-runoff regime. It is estimated that in the Yellow, Huai, Hai, and Liao River Basins, compared with recent land cover and the land cover of 50 years ago, 35% of these basins have experienced changes to the rainfall-runoff proportion, the runoff would decrease by 10%–20% 120 100 80 60 40 20 0 1950

1960

1970

1980

1990

2000

2010

Year Fig. 18.4 Into-sea runoff change during 1956–2000 in Yellow River. Source Shen (2010) Permission granted by Shen (2010) subject to proper citation

420

18 Climatic Change and Water Resources

under normal precipitation and 15%–40% in a dry year. In these four river basins, precipitation decrease contributed to 75% of decrease in surface water resources, of which 60% in the Yellow River Basin and 80% in the Huai and Hai River Basins. The following also occurred at the regional level: • In the source region of the Yangtze River Basin from 1956 to 2004, runoff in the Zhimenda Hydrological Station saw a “more-less-more-less” process. In terms of 10-year steps, the 1990s was the driest period and the 1980s was the most plentiful period (Shi et al. 2007). • In the Yellow River Basin, annual runoff at San-Hua reach decreased at a rate of 537 million m3 each 10 years, impacted by human activities and climate change (Li et al. 2007). In the Tao River Basin, runoff decreased 35% during the 1980s and 1990s (Zhang et al. 2003). In the upper reaches of Lanzhou in the Yellow River, runoff at Lanzhou Hydrological Station from 1990 to 2000 decreased by 18% compared to the annual average (Qian et al. 2004). In the Weihe River Basin, the 1950s, 1960s, and 1980s measured more runoff, but runoff decreased following the 1990s (Zheng et al. 2009). In the source region of the Yellow River, runoff was greater from 1956 to 1969 and 1975 to 1986 and lower from 1969 to 1975 and 1986 to 2004 (Jiang 2008). As a whole, from 1950 to 2017, the runoff of four hydrological stations along the mainstream of the Yellow River showed a significant downward trend, and the rate of decline reflected a cumulative effect. In the 1960s, the Yellow River had the largest amount of runoff in the past century, but runoff significantly decreased after the 1990s. Runoff for the four hydrological stations revealed a change point in 1985–1986. The annual runoff in the change period was significantly lower than the annual runoff in the base period, and the decline increased from upstream to downstream (Liu et al. 2019). • In the Nen River, runoff generally increased from 1951 to 2005 (Yang et al. 2008). • In Hebei Province, water resources decreased decade by decade from 1956 to 2000 (Shao et al. 2008). • In the out-to-sea river basins of the Tibetan Plateau, runoff did not increase from 1956 to 2000 but rather underwent regional variations: decreases were measured in the Yellow River and Yangtze River, and increases occurred in the Yalong River (Cao et al. 2005). In the Karuxung Watershed in the Himalayan Mountains, runoff in 1994–2003 was 26% greater than that of 1983–1993 due to temperature increases (Zhang et al. 2006). • The past 20 years in the Tarim River Basin have been a humid and warm period, with annual runoff from four source rivers 6.6% higher than the average in the 1990s (Wang et al. 2006). In the Kuitun River Basin, runoff increased at a rate of 20 million m3 per 10 years from 1963 to 2005 (Jing et al. 2008). In North Xinjiang, water resources decreased from the middle of the 1950s to the early 1980s, after which water resources increased (Cao et al. 2008). In Yarkent, Karakorum River, in the 1950s–1960s and 1980s, monitored runoff was 7.2% and 2.1% lower than average, respectively. However, in the 1970s, 1990s, and the early twenty-first century, runoff was 1.2%, 3.4%, and 4.5% more than average, respectively (Sun et al. 2008). In the Aksu River Basin, runoff underwent a significant increase

18.4 Water Resources

421

from 1956 to 2006, mainly deriving from glacier water (Wang et al. 2008). Yet due to human use, runoff from the Aksu River to the Tarim River decreased 15.9% from 1961 to 2000 (Zhang 2008). In the last 50 years, in the source rivers of the Tarim River, runoff increased somewhat from the end of the 1950s to 1980 and significantly increased after the 1990s (Fu et al. 2008). Runoff from the Tianshan Mountains to Tarim River also increased; given the precipitation increase and warming temperatures after 1986, runoff in the 1990s was 18% greater than in the 1980s (Gao 2008), and in the source region, runoff from 1991 to 2002 was 6.5% greater than from 1956 to 1990 (Jiang and Xia 2007). In the Kaidu catchment, one of the source rivers of the Tarim River, there was a significant increase in runoff from 1987 to 2002 (Zhang et al. 2004), and this trend continues into the 2010s (Liu 2019). • In the Shiyang River Basin, runoff from mountainous areas decreased 4.58 billion m3 in the past 55 years (Huang et al. 2008). Runoff decreased by 37% in the 1970s and 70% in the 1990s compared to the 1960s. In Zhangye Prefecture in the Hei River Basin, runoff was greater in the 1950s and 1980s, lower in the 1960s and 1970s, and has increased since the end of the 1990s (Liu et al.2008). In the Hei River Basin, runoff from the mountains has increased in the last 60 years (Zhang et al. 2007).

18.4.2 Estimates According to China’s National Assessment Report on Climate Change and the Water Information Centre of MWR, based on the population projection of 1.62 billion people in China in 2050 and in 2100, a VIC distribution hydrological model and PRECIS 50 km*50 km SRES A2 and B2 scenarios projected that climate change would have a significant impact on water resources across China. In the next 50– 100 years, the mean annual runoff is likely to decrease in several northern provinces and regions, including Ningxia, Gansu, Shaanxi, Shanxi, and Hebei. At the same time, annual runoff would increase significantly in water-abundant southern provinces and regions, including Hubei, Hunan, Jiangxi, Fujian, Guangxi, Guangdong, and Yunnan. These changes indicate that climate change will increase the frequency of flood and drought events, and water scarcity tends to continue in Northern China, especially in Ningxia and Gansu, where water resources per capita are likely to further decrease. For most provinces, water supply and demand would generally be imbalanced over the next 50–100 years, and gaps between water resource supply and demand might grow in Inner Mongolia, Xinjiang, Gansu, and Ningxia (Compiling group 2007). Given the precipitation changes (0, ± 25%, ± 50%) and temperature changes (0°C, ± 1°C, ± 2°C), the sensitivity analysis indicated that in the Yellow River, Han River, Gan River, Huai River, and Hai River, runoff would be more sensitive than temperature. Surface runoff would be more impacted than the total runoff, and semihumid areas and semi-arid areas would be less sensitive than the semi-arid and semihumid areas, with a significant increase from south to north and from mountainous

422

18 Climatic Change and Water Resources

areas to the plain. The most insensitive region is arid inland river basins and the upper stream of the Yellow River Basin. The most sensitive region is semi-humid and semi-arid regions, such as the Songhua and Liao River Basins, Hai River Basin, and Huai River Basin (Compiling group 2007). According to the China Meteorological Bureau, in the scenario of temperatures increasing by 1.9–2.3 °C in Northwest China, the glacier area will decrease by 27% compared to the present, and all small glaciers less than 2 km2 will disappear. With the increase of production and domestic water demand, the water shortage will be about 20 billion m3 from 2010 to 2030 in China.1 There are many studies on the responses of water resources to climate change and global warming. Fu’s (1993) research indicated that a 2 °C increase in temperature in North China would reduce runoff by 10–20% in the Qinglong River, Tang River, and Sha River and by 40% in the Bai River. With a 10% decrease in precipitation, runoff in these four rivers would decrease by 15–25%. In the tropical area, a 2 °C temperature increase and 10% decrease in precipitation would reduce runoff by 40–60% in North China and 25.6% in the Wanquan River in Hainan Province. The research results of “Impact of Climatic Change on Water Resources and its Adaptive Measures” indicated that, based on four global circulation model (GCM) scenarios, runoff would likely increase in the Songhua River Basin; increase or decrease in the Liao River Basin; and decrease in the North China Plain, the middle and upper reaches of the Yellow River and the Huai River (Water Resources Information Centre, MWR 1996). In the middle reach of the Yellow River, annual runoff would decrease by 3.7– 6.6% with a temperature increase of 1 °C and by 17–22% with a 10% decrease in precipitation (Zhang et al. 2009). In the Yellow River, with significant variation among different modeling results, the greatest decrease in runoff would be 23.6% and the greatest increase would be 5.7% (Yu et al. 2008). In the headwater area of the Yellow River, based on eight scenarios (under temperature increases and decreases of 1 °C and precipitation increases and decreases of 10% and 20%), annual runoff would decrease due to warming temperatures, but runoff would increase during November and April and from May to October due to melting snow (Jia et al. 2008). At the same time, according to 13 scenarios from the IPCC DDC, runoff would generally decrease by less than 10% in the next 50 years, and the temperature increase after 2050 would result in a 5% reduction in runoff every 10 years. In the Huai River Basin, incorporating three SRES scenarios (B1, A2, A1B) from four GCMs and applying Xinanjiang distributed hydrological model, research has demonstrated that runoff would mainly decrease from 2011 to 2040 (Gao 2008) In the Danjiangkou Reservoir, the predicted and modeled runoffs into the reservoir will increase by 8.18% (HadCM3), 7.78% (CSRIO), and 2.14%(CCSRINES) (Zhang 2008). In West Creek of Jin River in Fujian Province, with a 4 °C and 20% decrease in precipitation, runoff would decrease by 33.34% (Gao 2008). In the Laizhou Bay region of Shandong Province, water shortages from 2020 to 2042 will be 2–5.7 1 Climate

warming will deteriorate water shortage in West China, available at http://news.xinhua net.com/newscenter/2008-03/22/content_7839145.htm.

18.4 Water Resources

423

billion m3 due to climate change (Deng and Zhao 2001). In the Wuyuer River Basin in Heilongjiang Province, based on the average of the CSIRO-MK2 and CCSR/NIES outputs and four emission scenarios (SRES A1, A2, B1, B2), the runoff depth and coefficients will significantly increase under all scenarios (Sun et al. 2006). In Jialing River, based on the unfavorable combination in 2050 and 2100, runoff would reduce by 23.0%–27.9% in 2050 and 28.2%–35.2% in 2100 (Chen and Clarke 2007). Based on the CMIP5 model simulation, precipitation will increase significantly under the RCP2.6, RCP4.5, and RCP8.5 scenarios in the future in Northwest China, especially under RCP8.5. Water vulnerability will be reduced significantly as precipitation increases. Based on Scenario 2, average precipitation will increase by 26.5% under the RCP8.5 scenario, and water-saving mechanisms will be enhanced in the 2050 s. The vulnerability of water resources in the Tarim River Basin will be substantially reduced, and water resources in Inner Mongolia, the Qaidam Basin, and the Hexi Corridor will be reduced to medium or low vulnerability. However, water resources in the Tuha Basin and north of the Tianshan Mountains will remain severely vulnerable (Wan et al. 2015). In the Hai River Basin, it is modeled that annual runoff will decrease under warmer temperatures from 2021–2050, with slight precipitation increases and a significant increase in evaporation. There will be more frequent flood years and fewer drought years. Seasonally, precipitation will decrease during the flood season and increase during non-flood season, and monthly runoff will decrease to some extent (Ding et al. 2010). In the Yangtze River Basin, under the rise in atmospheric temperature, future precipitation variation is more complicated. The basin water resources over the next 100 years, as estimated by predictions from the climate model, will decrease in the next 40 years and then gradually increase (Zhang 2014). It should be noted that although many studies have been conducted on the estimation of water resources resulting from climate change, the estimates are mainly decided by the outputs of GCM models and the selection of scenarios.

18.5 Recommendations Adaption to uncertainties is a painful issue and becomes even more challenging when preparing for future uncertainties in the long term. With relation to water resources, it is not yet clear how many changes result from climate change due to increasing concentrations of carbon dioxide and how many changes derive from other factors. All we have projected in the future will be impacted by many factors, including social and economic developments that are more intense than climate change in the short term. Therefore, water resources’ adaptation to climate change becomes something to what will happen and what will not happen, based on current understanding, knowledge, and policies. In China, according to existing water resources strategies and the estimated results of climate change on water resources, the following measures shall be prepared.

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The Information Centre of MWR proposed that adaptive measures under climate change adopt a new concept of change to reduce unfavorable results related to climate change. At the same time, adaptive measures must not only avoid or reduce/eliminate the negative influence of climate change but shall also promote sustainable social development and reduce vulnerability. For China, the report suggested that it would be necessary to strengthen water infrastructure construction, increase water savings investment and awareness, use the potential of current infrastructures, develop new water sources, implement inter-basin water transfer projects, facilitate wastewater reuse, strengthen water legislation and formulate emergency countermeasures (Water Resources Information Center, MWR 1996). China’s National Assessment Report on Climate Change (Compiling group 2007) and the Research Report on Climate Change Impact and Countermeasures on Water Resources Works (China Institute of Water Resources and Hydropower Research 2009) provide a full range of water resources countermeasures for climate change in China. Changing water policy from supply management to demand management The change from supply management to demand management will provide certainty for water resources management. Due to climate change’s impact on water resources, water supply will change and result in uncertainty. However, the human demand for water resources is a relatively certain issue and can be controlled by human beings themselves. Conducting demand management shall change the whole concept of and work in the water sector, including water resource planning, infrastructure development, water resources management, and so on. The core goal of demand management is to increase water-use efficiency and benefits. The focuses of demand management in China are on strengthening water resources allocation, saving and protection, and regulating industrial structures according to current water resources conditions. Incorporating climate change into water resources planning Climate change’s impact shall be incorporated into water resource planning in order to increase their adaptability. Water resources planning shall analyze water resource reactions under different climate change scenarios, including the extremes. Strengthening the construction of water infrastructure to increase regulation ability Climate change will make the circumstances of water resources shift to a more unhelpful situation in China, especially given the current shortage of water resources in North China. To adapt to this change, it is necessary to increase the regulation and allocation abilities of water resources systems. Therefore, comprehensive infrastructure shall be built in river basins with potential for water resources, and emergency and backup sources shall be constructed, particularly in mid-sized and large cities. At the same time, cross-river basin water projects shall be built to mobilize water resources among basins.

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Strengthening water resources protection At present, water pollution is a very serious threat to water supply security in China. Water pollution not only deteriorates water quality but also reduces the availability of water resources. It is necessary to strengthen water resources protection by implementing a drinking water sources protection system and strengthening groundwater protection. Strengthening non-traditional water resource use to promote multi-water source allocation Non-traditional water resources include recycled wastewater, desalinated water, saline water, rainwater, and floodwater. Given the water shortage in China, utilizing non-traditional water will be an important measure to solving water supply and demand conflict. Urban rainwater harvesting will increase water-use efficiency, reduce urban flood pressure, and recharge groundwater. Treated recycled water is a stable water source in urban areas and could be used as a secondary source to supply industry, environmental purposes, and irrigation (China Institute of Water Resources and Hydropower Research 2009). Promoting the implementation of integrated river basin water resources management Under China’s centralized administrative system, it is difficult to fully implement integrated river basin water resources management. However, integrated river basin water resources management is important in managing water resources effectively. China should promote the implementation of integrated river basin water resources management at all levels of management, including water resources planning, institutional reform, and water resources protection. Adaption in key regions The Yellow, Huai, and Hai River Basins are along political, economic, and cultural centers and encompass the grain production base. Water resources will continue to decrease and deteriorate, and it is therefore necessary to regulate the industrial structures and industrial distribution to build a water-saving society, increase wateruse efficiency and effectiveness, change agricultural structures, promote south-tonorth water transfer projects, and maximize the use of non-traditional water sources. Northwest China has a semi-arid to arid climate. Although climate change will result in increased precipitation, it will not fundamentally change the water shortage. At the same time, the reduction in glaciers will reduce the stability of runoff. Therefore, it is necessary to allocate water reasonably to guarantee environmental water requirements for key areas and draft drought contingency plans. The southeastern coastal cities are the economic centers of their regions. Under climate change, the occurrence of hydrological extremes will increase. Therefore, it is necessary to develop typhoon and flood precautionary systems to improve flood

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control, strengthen water pollution control, and manage groundwater exploitation to prevent seawater introduction and sea-level rises.

18.6 Summary This chapter provides estimates and evidence of climate change’s impact on water resources in China. The chapter provides both observations and estimates of parameters in the hydrological cycle, including precipitation and water resources. Recommendations are also provided for managing climate change. It is difficult to define climate change’s impact on water resources with certainty. It is even more difficult to compare the results in China with more developed countries because China is experiencing such fast development not only economically, but also in terms of land use and natural resources use. Past evidence has shown that, jointly impacted by human activities and climate change, water resources have not shifted in humans’ favor. Current water issues are proof that all these changes have happened. In the future, although precipitation will increase in Northern China, surface runoff will decrease, which will further worsen the water shortage. Facing these water challenges in China—whether they result from climate change or not—is a critical problem for China in order to realize sustainable water resources development and support sustainable social and economic development. Therefore, all aspects of water resources management, including infrastructure development, non-structural instruments, water saving and new water sources development, shall be strengthened to solve the present water problems and prepare for future changes. In addition to a multi-adaptive management method, a high climate resilience and low-regrets development pathway shall be adopted in order to increase resilience and reduce potential risk.

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Jing, L., et al. (2008). Relations between climatic change and runoff in Kuitun Riverbasin. Desert and Oasis Meteorology, 2(6), 41–45. Kang, L., et al. (2007). Climate change of the Lanjiang Basin in recent 43 years and its impacts on water resources. Meteorological Monthly, 33(2), 70–75. Li, R., et al. (2007). Influence of the climate variations to the runoff depth of the San-Hua Reach of the Yellow River. Yellow River, 29(10), 42–43. Li, J. (2008). Characteristics and trends of change in the climate of the Irtysh River Basin. Journal of Hohai University (natural sciences), 36(3), 311–315. Li, L., et al. (2008). Analysis on the characteristics of temperature and precipitation in the Shiyang River Basin since recent 45 years. Arid Zone Research, 25(5), 705–710. Lin, Y., & Wang, Y. (2007). Spatial-temporal evolution of precipitation in China Loess Plateau. Journal of Desert Research, 27(3), 690–697. Liu, X., et al. (2007). Spatial and temporal characteristics of precipitation resources in Southwest China During 1961–2000. Journal of Natural Resources, 22(5), 783–792. Liu, Q., et al. (2008). response of runoff to interannual climatic change over Changjiang River sources region. Meteorological Science and Technology, 36(3), 277–280. Liu, H. (2019b). Dynamic change and trend analysis of water resources in Tarim River Basin. Gansu water resources and hydropower technology, 55(10), 6–9. Liu, C. et al. (2019). Analysis and understanding on runoff variation of the Yellow River in recent 100 years. Yellow River, 41(10): 11–16, 6. Luo, B., et al. (2007). Climate changes in Meizhou and its influences on water resources. Guongdong water resources and hydropower, 5(52–54), 57. Ma, R., et al. (2007). Climatic change and its impact on water resources in Jinzhong, Shanxi Province, for recent 49 years. Meteorological Monthly, 33(1), 107–111. Ma, L., et al. (2019). Rend and mutation identification of precipitation sequence in the source region of the Yellow River. Journal of Sichuan Agricultural University, 37(6), 842–851. Pu, Z., et al. (2008). Facts and features of climate change into warmth and damp in the Tianshan Mountains area in the recent 36 years. Arid Land Geography, 31(3), 409–415. Pu, H., et al. (2009). Climate change in the Jinshui River Basin of the Upper Han River in recent 50 years and its impacts on ecological environment. Resources and Environment in the Yangtze Basin, 18(5), 459–465. Qian, Y., et al. (2004). Influences of variation of base flow in the upper reaches of Lanzhou on water resources of Yellow River. Journal of Water Resources and Water Engineering, 15(1), 19–23. Qu, J., et al. (2008). Influence of climate variation of He-Long Reach to water resources. Yellow River, 30(2), 42–44. Rong, Y., & Luo, J. (2009). Evolution of climate change intensity in North China from 1901 to 2002. Journal of Hohai University (Natural Sciences), 37(3), 276–280. Shao, A., et al. (2008). Impacts of climatic change on water resources of Hebei Province in recent 50 years. China rural Water and Hydropower, 2, 51–58. Shen, D., et al. (2020). Water rights system in the Yellow River Basin: problems, challenges, and suggestions. Resources science, 42(1), 46–56. Shen, D. (1996). The asynchronisation/synchronisation of water resources and hydrological response to climatic change in China’s South-to-North Water Transfer Project. Doctoral Thesis, Institute of Geography, Chinese Academy of Sciences. Shen, D. (2010). Climate change and water resources: evidence and estimate in China. Current Science, 98(8), 1063–1068. Shi, X., et al. (2007). The variations of characteristic of the runoff in the source regions of the Yangtze River from 1956 to 2004. Journal of Mountain Science, 25(5), 513–523. Sun, W., et al. (2006). Impact of climate change on the hydrological variation in Wuyuer River Basin. Journal of Water Resources and Water Engineering, 17(6), 27–32. Sun, B., et al. (2008). Changes in runoff and river sediments in the upper reaches of Yarkent River, Karakorum during 1954-2007. Journal Glaciology and Geocryology, 30(6), 1068–1072.

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Chapter 19

Review and Outlook

Abstract This chapter reviews water policy in China and outlooks for future directions. Water policy in China since 1980 is divided into four periods: the 1980s, 1990–1998, 1998–2009, and after 2009. Since 1980, China’s water policies have experienced dramatic changes: attempting to improve benefits in the face of criticism for low efficiency in the 1980s; allocating large investments to acknowledge the important role of water in the country’s economy during 1990–1998; redefining the water–human relationship during 1998–2009; and providing the strictest water resources management as the definitive solution after 2009. For the future, it is estimated that water resources management, particularly regarding groundwater, will continue to strengthen. Reforms, such as water pricing, institutions, and water rights, will deepen, but water rights development and water quality management will be a long process. Macro- and micro-management instruments will be emphasized, but improving implementation and management of resources, rather than managers, will be a critical issue, and integrated water resources management will be a challenge. Keywords Water policy · Water resources development and use · Improving benefits · Role of water sector · Redefining water–human relationship · Integrated water resources management China’s social and economic development since 1978 has been remarkable. China has successfully transformed from a rural, agricultural society to an urban, industrial one, and from a command economy to a market-based one (World Bank 2013). The achievements in China’s water sector are impressive too, with its traditional approach to water resources management replaced by a modern and sustainable water sector. Sophisticated water resource legislation and institutions are in place, and the sector has adapted to meet its new role in the market economy; water-use efficiency and effectiveness have been greatly improved (Chen 2008). However, China is still facing critical water problems: frequent water disasters, conflicts between water supply and demand, serious water pollution, and a degraded water ecosystem.

© The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2_19

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19.1 Water Resources Development and Use Since 1949 In the 70 years since the foundation of the PRC, water resources development and use have significantly improved in the country. The irrigated area grew from 15 million ha to 74.542 million ha in 2018, of which 68.272 million ha is cultivated land. At the end of 2018, the total water supply capacity had reached 867.7 billion m3 , of which cross-county regional water supply projects; reservoirs; river and lake diversions; river and lake pumping; mechanical and electric tube wells; pond, bar, and pool engineering; and non-traditional water supplies contributed 56.71, 232.37, 210.51, 175.47, 140.09, 35.79, and 16.84 billion m3 , respectively. A multi-source water supply system has been established in China (MWR 2019). After 1949, water resource use experienced a process of fast growth, structural balance, and zero increase. Total water use increased from 103.1 billion m3 in 1949 to 601.6 billion m3 in 2018. Peak use occurred in 2013. Before 1990, agriculture was the key sector driving the increase in total water use; industry played the key role from 1990–2010. After 1990, structural change is being investigated with a decreasing percentage of agricultural use and increasing industrial and domestic use. After 2010, China entered into a zero-increase stage (Fig. 19.1). 700 600 500 400 300 200 100 0 1940

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Fig. 19.1 Water use in China between 1949–2016. Sources MWR Permission granted by MWR on its website subject to proper citation

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19.2 Water Resources Management Since 1978 China’s modern water resources management was developed in the late 1970s and early 1980s.

19.2.1 Legislation Over the last 40 years, China has developed a modern water legislation system. Water-related legislative work began at the end of the 1970s, based on the principle of rule by law. The MWR organized the drafting of water law, water and soil conservation law, and water sources protection legislation. In the mid-1980s, the Water and Soil Conservation Work Regulation and Water Tariff Formulation, Collection and Management for Hydraulic Engineering were issued by the State Council. In 1988, the Water Law was issued, a milestone in water legislation in China. Water legislation entered into a rapid development period. In the 1990s, the MWR formulated the “General Plan for a Water Legislative System” to strengthen water legislation. Several important water laws were issued, including the Water and Soil Conservation Law, Flood-Control Law, River Course Management Regulation, and Measures for the Implementation of the Water Abstraction Permit System. Local water laws were promoted. Before 2002, when the Water Law was revised, more than 700 water laws were issued by provinces. A water legislative system had been fundamentally established. The Water Law was revised in 2002. Since then, the focus was shift to gradually improve the water legislative system. Supporting legislation was issued soon after this revision, including the Flood-Control Regulation, the Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection, the Yellow River Water Resources Management Regulation, and the Hydrological Regulation. After 40 years, an improved and modern water legislative system has been developed in China, with the Water Law as its core, and consisting of four laws, about 20 administrative regulations, nearly 100 departmental rules, and more than 800 provincial laws and governmental rules. The system covers various aspects of water resources. Importantly, water laws have evolved with socio-economic developments, water issues, and water resources management ideas.

19.2.2 Institutions A special water resources management agency at the central level was set up in the mid-1980s. In 1984, the State Council decided the MWP should be responsible for national water resources management. In 1985, the National Water Resources Coordination Group was established, with its office at the MWP. The group was merged

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with the National Water and Soil Conservation Group in 1988 to become the National Water Resources, Water, and Soil Conservation Leading Group,1 and closed in a 1993 governmental restructure. The Department of Water Administration was set up in the MWR in 1988 and reformed as the Department of Water Administration and Water Resources in 1993. Since 1998, the Department of Water Resources (Management) has been the organ of the MWR. The National Water Saving Office was also created within the MWR in 1998, and in 2018 the Department of Water Saving was established. With the consolidation of water resources management at the central level, local water resources management agencies were developed accordingly. In addition, river basin water resources protection agencies were set up by the MWP and the State Council Environmental Protection Leading Group. These were renamed as the River Basin Water Resources Protection Bureau in 1984 and placed under the dual leadership of the MWR and the SEPA. In 2018, the agency was restructured as discussed in Chap. 3. Today, a sound water resources management institution exists in China. Combining river basin management and jurisdictional management, the institution consists of both national and local river basin management agencies and local water resources management departments and bureaus from provinces, counties, and even townships.

19.2.3 Key Management Instruments and Activities Water resources management activities started around 1980. The first national water resources assessment was conducted from 1979–1984. A river basin water resources protection plan was formulated in the 1990s. Allocation of water resources was stipulated in the 1988 Water Law. In 1987, the Yellow River Water Resources Allocation Plan was approved. After the 2002 Water Law, the work was gradually implemented in the country. After the issuance of the 1988 Water Law, the MWR organized preparatory work for water abstraction permits in 1990. After 1993, national implementation projects were promoted. Collection of water resources fees started in some cities in the early 1980s, and fees were collected in some provinces in the 1990s and in all provinces by the 2010s. In 2000, the MWR formulated a water function zone plan and a groundwater resources development and use plan. In 2003, the ministry issued the Management Methods for Water Function Zone initiative and started to conduct function zone management. In 2005, the MWR issued Supervision and Management Methods for the Discharge Outlets into Water Body and began to manage outlets.

1 http://www.gov.cn/zhengce/content/2011-03/30/content_3125.htm.

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In terms of water resources statistics, the MWR piloted a water resources bulletin in 17 northern provinces in 1995 and extended it to the whole country in 1998. Starting in 2003, environmental water use was included among water-use purposes in the bulletin. In the late 2000s, several comprehensive strategies were launched, including the strictest water resources management strategy thus far in 2009 and the river and lake chief system in the 2000s. A comprehensive and modern water resources management system has been developed in China. The system applies to both market mechanisms and commandand-control instruments and introduces public participation, but the implementation differs between these instruments.

19.3 Water Resources Policy After 1980 19.3.1 1980s: Improving Benefits In 1978, China began reform and opening policy. In the 1980s, the national strategy of “economic construction as the center and implementing reform and opening policy” was developed. In 1982, the 12th National Congress of the CPC decreed that full economic development should be shifted to the path of “increasing economic benefit as the” (Hu 1982). In 1984, the 3rd Plenary Session of the 12th Central Committee of the CPC issued the “Decision on Economic Institutional Reform”, which required the development of a socialist economic institution with Chinese characteristics. In 1987, the 13th National Congress of the CPC developed the theory of the “primary stage of socialism” (Zhao 1987). Guided by these strategies, reforms to China’s economic sector were progressively deepened from the rural areas to urban areas and from political and economic aspects to other areas, leading to fast economic development and social change in the 1980s. Compared to figures from 1978, GDP, national financial income, and average household income had doubled by 1987 (Zhao 1987). In recognition that “water resources development is the lifeline of agriculture”, the water sector was one of the few sectors with better development from 1950– 1980 in China. With the implementation of economic reforms, the water sector was criticized for not being cost-effective. This led to a requirement for the water sector to summarize lessons and improve operation and management by reforming water investment and management systems, including identifying cost-effective projects (Qian 1981). The rapid economic development of the early 1980s created two challenges for the water sector: (1) the rural regions had developed from a subsistence economy to a commodity-based economy, and from traditional agriculture to modern agriculture, which changed the water needs of the regions, and (2) national economic development, especially industrial and commercial development within urban areas,

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required the comprehensive and integrated management of water resources (Qian 1985b). These challenges required the sector to deal with issues that included traditional issues like flooding, waterlogging, and irrigation as well as an emerging urban water shortage in northern China. To deal with flood disasters in major rivers and water shortages in northern China, to develop comprehensive water use, and to protect water sources (Qian1984), China’s water policy required the water sector to “serve fully and transit”, which meant that the water sector was required to enlarge its service scope from being focused mainly on agriculture to instead supporting the development of the national economy and society as a whole, to shift from an emphasis on input and output to increasing economic benefits for the river basin, and to shift from simple production (of water) to comprehensive operations of the sector’s assets. This required the sector to fully use existing infrastructure to increase water-use economic benefits and to coordinate flood control, waterlogging, water supply, hydropower, water and soil conservation, and water sources protection (Qian 1985a). The importance of water resources was gradually realized in the early 1980s. In 1981, China Water Resources issued a commentary “Must Emphasize on Water Resources Issues” and pointed out that the urban water shortage in Beijing and Tianjin at the end of 1970s reflected the incompatibility of urban industrial development and water sources development, a situation that was exacerbated by water resources development and management problems (Commenter of the Journal 1981). Between 1979 and 1984, the first national water resources assessment was conducted, involving a full investigation of water resource quantity, quality, distribution, and development. The assessment, documented in the “Water resources assessment for China” (Department of Hydrology, MWR 1987), provided the basis for water resource development, use, and protection in China in the following 20 years. In 2010, with the completion of the National Water Resources Comprehensive Plan, a new assessment was released. From 1982 to 1986, the MWP conducted a water resources supply and demand analysis. Based on national guidelines, the analysis investigated sectoral water use in 1980, analyzed water shortages under existing supply facilities with different levels of reliability (P = 50%, 75%, and 95%), forecasted water supply and demand in 1990 and 2000, and provided the countermeasures to address any forecasted water shortages. The results were published in “Water Resources Use for China” (Water and Power Planning and Design Institute 1987). The methods developed in the analysis, such as water resources use zones, forecasting methods, and data processing procedures, became the guidelines for the 1993 National Medium and Long-term Water Supply and Demand Plan (Nanjing Institute of Hydrology and Water Resources, MWR & Department of Water Resources, China Institute of Water Resources and Hydropower Research 1999) and the 2002 National Water Resources Comprehensive Plan (Chen 2009a). The passage of the 1988 Water Law, the first modern water law in China, was the most important event in the 1980s for the water sector. The law established the principles of water resources development and management for China,

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including the following: “combining water resources development and protection”; “water resources development and water disaster presentation shall be overall planned, comprehensively coordinated, comprehensively used, cost-effective, and multi-objectively developed”; and “the state implements planned water use and water saving” (Sun 1988). The law also prescribed a range of water resources management systems, including water resources planning, water project protection, water abstraction permits, water resources fee collection, water-saving measures, river-channel management, and flood control and drought-resistance mechanisms. However, the most controversial provision in the law was related to the institutional arrangements. The law stipulated that “the state implements a water resources system combining integrated management and hierarchical, sectoral management”, a provision which was criticized for splitting responsibilities across different agencies, commonly referred to as the “nine dragons manage water”. The establishment of water resources management agencies started in the 1980s. In 1984, the State Council decided that the MWP, as the national water resources comprehensive management agency, was responsible for integrated planning, legislation, research, and allocation and regulation of national water resources and for coordinating water conflicts (China water resources 1984). In 1985, a National Water Resources Coordination Group, with its office at the MWP, was formed (China water resources 1985). The river basin water resources protection institutions had been established in 1975. These agencies were renamed in 1985 as river basin water resources protection bureaus (Dept. of Water Resources, MWR 2008). Another activity in the 1980s with long-term significance was the formulation of the Yellow River Water Resources Allocation Plan. In the early 1980s, to deal with increasing provincial water demand, the National Planning Commission organized to formulate a water resources allocation plan to coordinate water use in the Yellow River Basin. Approved by the State Council in 1987, the plan did not have a real impact on water use in the basin before 1999 but was the key to deal with serious continuous dry-up of the main channel after 1999. In summary, the 1980s was not a good time for water sector development in China. Criticized for low output to input, water sector investment was significantly decreased. Impacted by agricultural reform and land occupation, the area under irrigation decreased in many provinces (Qian 1987, 1999). In the meantime, facing new challenges such as rapid industrial and urban development and economic reform, the water sector had to change and adapt. The influences of these unfavorable factors were reflected in water use at the time: the water supply increase was slight, from 443.7 billion m3 in 1980 to 470 billion m3 in 1988 (Yang 1989).

19.3.2 1990–1998: Repositioning Role The 1990s was the time of setting up the institutions to support a socialist market economy, including allowing the market to play a fundamental role in resource allocation while maintaining a form of macro-regulation by government. The establishment

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of market-based institutions helped China to hasten its economic reforms by transforming the way state-owned enterprises operated, fostering markets, and reforming governmental functions (Jiang 1992, 1997). Economic reform in the 1990s positively promoted sectoral reforms. The 1990s was a period with frequent water disasters and water pollution, reflecting worsening water issues and delays in water sector development when compared to broader economic development. The annual agricultural water shortage was around 30 billion m3 , and the urban water shortage was 6 billion m3 . Serious major floods happened in 1991, 1994, 1995, 1996, and 1998. Daily wastewater discharge was more than 100 million tons, of which more than 80% discharged without treatment directly into water bodies (Niu 1996). Water resources development faced a dilemma at the end of the 1980s and the beginning of the 1990s. Flooding was still a serious problem; irrigation facilities could not meet agricultural requirements, particularly those for grain production; hydropower development could not meet power demands; urban and industrial development resulted in a deteriorating water supply and increased conflicts over demand, particularly in northern China; and water pollution and water and soil erosion were becoming more severe. At the same time, water and the resources available remained limited (Qian 1989). Therefore, in the early 1990s, the water sector found it necessary to redefine its role in the national economy, to formulate strategies and policies to realize that new role (Qian 1990), and to increase investment (Yang 1991b). In 1990, two key documents—the Proposals to Formulate National Economy and Social Development Ten-Year Plan and the 8th Five-Year Plan (13th Central Committee of CPC 1990)—included policy statements that water resources development is the lifeline of agriculture and basic industry in the national economy and social development. In 1991, the Outlines for National Economy and Social Development Ten-Year Plan and the 8th Five-Year Plan issued by the 4th Plenary Session of the 7th NPC stated that “water resources development shall be regarded as the basic industry, and put in an important strategic position”. In 1995, the Proposals to Formulate National Economy and Social Development 9th Five-Year Plan and the 2010 Long-Term Objectives at the 5th Plenary Session of the 14th Central Committee of CPC placed water resources development as the first priority in infrastructure construction and saving water as the first priority in resource savings, and they required the strengthening of water resources development to be consistent with economic development. These plans and policies required that the basic industry role must be developed and strengthened by concept change, by reflecting in regional social and economic development plans, by formulating water sector industry policy, and by developing a water sector entity (Yang 1991a). In 1993, the MWR issued the Outlines of Water Sector Reform and Development for1990s (Zhang 2009), which defined the objective and pathway for water sector development for the 1990s. The document focused on increasing economic benefits and emphasized strengthening operations and management to develop the water sector and establish new sectoral institutions and operational mechanisms compatible with a market economy.

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At the same time, Opinions on Implementing the Development of Five-System for Water Sector was released by the MWR. This policy document set the guidelines for water resources development over this period, based on the following five systems (Niu 1995): (1) A diverse, multi-channel and multi-level water sector investment system: With the theme of the “water sector serving society and society developing water resources”, the purpose of the system was to increase water investment. The policy provided for water resources projects to be invested in by the state, locals, collectives, and individuals, depending on the characteristics of the project. (2) A scientifically based water asset operation and management system: The policy provided for property rights of water assets to be clarified and operation and management responsibility to be defined based on the characteristics of water assets. Three types of water assets—social public-interest assets, payment for services assets, and production and operation assets—were defined, as were policies for each type. (3) A water sector pricing and tariff system: This was meant to regulate the pricing ratios between water services and other commodities and services. (4) An advanced water legislative system: The goal of this was to accelerate water legislation and improve implementation. (5) A better and more effective water service system: This was to meet the board goal of serving the whole of society. To some extent, increasing investment in infrastructure can result in water resources management being neglected. In 1993, the State Council issued the Water Abstraction Permit Implementation Method. Supported by ministerial regulations and provincial legislation, water abstraction permits were widely applied and became the most effective and mature instrument for managing individual water use in China. At the same time, most provinces started to collect water resources fees. In this period, water resources management departments were set up at a range of administrative levels, including those at central, river basin, provincial, prefectural, and county levels. With increasing urban water use, the first water affairs bureau, which integrated water supply and use with wastewater collection and treatment, was established in 1993 (Dept. of Water Resources, MWR 2008), as discussed in Chap. 16. In the field of water resources planning, China launched the National Medium and Long-term Water Supply and Demand Plan in 1993 (Nanjing Institute of Hydrology and Water Resources, MWR & Department of Water Resources, China Institute of Water Resources and Hydropower Research 1999), which was based on methods developed in the 1980s. However, subsequent evidence suggested that the forecasts in this plan differed significantly from actual water use. The most important document in this period was the Water Sector Industrialization Policy, issued in September 1997. This document aimed to address the constraints the water sector imposed on economic development, to promote sustainable water resources development and use, and to prevent water disasters. The objectives of the policy were to clarify project characteristics and investment sources and increase financial sources; to define reasonable prices, standardize tariff collection,

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and promote the industrialization of the water sector; and to promote water resources saving and protection (National Planning Commission 1997). As such, the policy was to increase water investment and to develop the sector through industrialization. Although much effort was exerted in preparing this policy, a massive flood in 1998 was to drive major policy changes, and as such the Water Sector Industrialization Policy was not well-implemented. However, its objective of increasing investment in the water sector was met. The 1990s was a good time for the water sector in terms of development. By recognizing that water resources development was lagging behind economic development, and driven by the overall economic reform agenda, the sector developed quickly to catch up. This was achieved through increased investment, including investments from a broader range of financial sources, and through improved sectoral efficiency and the internal collection of tariffs, which allowed for maintaining operations and enlarging the sector. During the period from 1992–1996, water infrastructure investment increased by 25.2% annually. As a result, the daily water supply capacity increased by 20 million m3 , and the overall water supply capacity exceeded 520 billion m3 (Niu 1997b). In 1996, the water sector total income reached 97.96 billion RMB, 3.9 times what it was in 1992 (Niu 1997a). However, in the 1990s, water was not only about investment and construction of water projects. After 20 years of fast development, China’s view of the water–human relationship was to undergo a major transformation as a result of the Yangtze River experiencing one of the largest floods of the past century.

19.3.3 1998–2009: Redefining the Water–Human Relationship In 1998, the third largest basin-wide flood of the twentieth century occurred along the Yangtze River, resulting in the river breaking the main level. The flood inundated more than 1 million ha of cultivated land in Hunan, Hubei, and Jiangxi provinces, and broke 1,705 dikes. The flood directly affected more than 2.3 million people and resulted in 1,432 deaths (Qian 1998b). After the flood, the national leadership became acutely aware of the importance of water resources development, as well as existing weaknesses within China’s water sector. In 1998, Decisions on Some Key Problems Related to Agriculture and Rural Works, issued at the 3rd Plenary Session of the 15th Central Committee of the CPC, required that “water resources development shall mobilize the resources of the whole society” and that among problems to be addressed, “the most pressing is to increase investment to harness major rivers and lakes to increase flood-control ability” (15th Central Committee of CPC 1998). The 1998 Yangtze Flood was in part a symptom of the poor state of the water sector in the late 1990s. Another symptom was the 1997 drying up of the Yellow River, which experienced the longest dry-up of its main channel since 1972. This kind of dry-up was more serious in the inland rivers in Northwest China, resulting in severe ecological problems.

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China was facing four main water resources issues: regular floods, water shortages, water and soil erosion and ecological degradation, and water pollution (Wang 2005). However, the approach to addressing these issues suffered from significant limitations: in planning, water resources were only considered from the point of view of the water sector, not in the broader demographic, resources, and environmental systems; in development, there was a greater emphasis on developing new sources rather than saving water; there was a greater focus on water quantity rather than water quality; and infrastructure construction was emphasized at the expense of non-structure instruments (Qian 1998a). This period was a golden time for economic development for China. Entering the WTO greatly pushed economic development in China, with the country becoming the third-largest economy in the world in 2007 and the second in 2010. GDP per capita increased from $750 in 1998 to more than $5,000 in 2009 (National Bureau of Statistics of PRC 1999, 2010). The improving social welfare and rapid urbanization process that accompanied this economic development led to demands for a safer water supply, improved water quality, and a better and more amenable water environment. This led to a shift toward a “resources-oriented water resources development”, rather than the more traditional “engineering-oriented water resources development” (Wang 1999). “Resources-oriented water resources development” required a change in mindset: from unlimited abstractions of water to harmony between human and nature; from viewing water as an inexhaustible resource to recognizing the limits of freshwater resources; from focusing on protecting people from water harm to instead considering the harm humans cause to water systems; from emphasizing water resources development and use to emphasizing allocation, saving, and protection during development and use; from emphasizing infrastructure construction to emphasizing both “hard” and “soft” measures; from supply management to demand management; from separated management of quantity and quality to integrated allocation, regulation, and management of supply, use, drainage, and reuse (Wang 2000). Implementing a “resources-oriented water resources development” was supported by the development of the theory of water rights, water markets, and water pricing. The theory stated that clarifying water rights was a prerequisite to deepening water sector reforms and to achieving the optimal allocation of water resources; tradable water rights were the basis for developing water markets; water pricing and water markets were important tools to allocate water resources; and governmental macroregulation, democratic consultation, and water market regulation were the institutional guarantees to realize effective and optimal allocation of water resources (Wang 2001a). Following the theory, a policy on implementing a “water-saving society” was established as the platform to implement water rights at both the macro- and microlevels (Wang 2001b), and water rights transfer was an important way to promote optimal water resources allocation (Wang 2004). The aim was to encourage sustainable social and economic development supported by sustainable water resources development (Wang 2001c), based on harmony between water and human beings (Wang 2004).

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The “resources-oriented water resources development” strategy and water rights were incorporated into the 2002 revised Water Law, making the 2002 law the first “water resources” law in China. The revised law clarified the water rights system, defined water resources management institutions, strengthened water resources protection, and provided more direction related to water resources allocation and saving. The revision of the law also facilitated the development of the water resources management legislative system, including the release of a series of policies and practice guidelines, such as the 2006 Regulation on the Management of Water Abstraction Permits and Water Resources Fee Collection by State Council, the 2002 Management Methods for Water Resources Justification of Construction Projects, the 2003 Management Methods of Water Function Zones, the 2005 Supervision and Management Methods for Discharge Outlets into Water Bodies, the 2007 Interim Measures for Water Resources Allocation, the 2008 Water Abstraction Management Methods, and the 2008 Water Resources Fee Collection and Use Management Methods, all issued by the MWR. Supported by local laws and regulations, a multilevel water resources management legal system developed around the Water Law, and the management systems for water resources development, use, saving, protection, and management were defined. The 2002 Water Law resulted in reforms to water resources management institutions. The law restructured the hierarchical and sectoral management arrangements set out in the 1988 Water Law and stipulated that “the state implements a water resources management institution combining river basin management with jurisdictional management”. This led to a shift away from the previous arrangements whereby surface water and groundwater resources and urban and rural water resources were administrated by different agencies: instead, the new law resulted in “one-dragon administering water”. At the same time, the law defined for the first time river basin management organizations and set out their responsibilities (Yang 2002). In practice, the new institutions were developed as part of the 1998 governmental restructure, aimed at supporting the idea that “one ministry is responsible for one issue”, and river basin management organizations for major rivers and lakes had been in place for many years. During the implementation of water rights and water markets, two cases of water trading were widely and deeply investigated and discussed. The first, as discussed in Chap. 5, was the Dongyang–Yiwu water rights trade between two nearby counties in Zhejiang Province. Yiwu had experienced quick economic development but lacked an adequate clean water supply, and Dongyang had surplus freshwater resources in its reservoirs. Therefore, the two counties signed a contract to trade 50 million m3 of permanent rights at the price of 200 million RMB. The trade changed the traditional government-arranged water resources allocation mechanism and employed a marketlike method. The case was regarded as the first water rights trade in China, but several similar cases were subsequently identified in the country (Shen et al. 2006b). Another famous case was the water rights transfer in the Inner Mongolia and Ningxia regions. In response to fast industrial development from the national energy basis development in the two regions and limited water resources controlled by the Yellow River Water

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Resources Allocation Plan (National Planning Commission & MWR 1998), the idea of “investing agricultural water-saving and transferring saved water to industry” was developed. The transfer both increased agricultural water-use efficiency and provided water for industrial development (Shen et al. 2006a; Macgrath et al. 2006). At the river basin level, following the concept of water rights, a river basin water resources regulation plan, based on the 1987 allocation plan, was introduced and implemented in 1998 in the Yellow River to address the river’s drying-up, as well as the associated interprovincial water conflicts. The regulation plan and its implementation became the model for river basin water resources allocation and regulation in northern China. The issuance of the plan soon started to alleviate the severe ecological problems in the downstream areas and end-tail lakes. At the jurisdictional level, the concept of the development of a “water-saving society” was promoted as the platform to conduct integrated water resources management, including developing water sources, increasing water-use efficiency, and protecting water resources. The pilot was started in Zhangye Prefecture in the Hei River Basin, Gansu Province, to support river basin water resources regulation, and then extended to the whole of China. The Zhangye pilot included granting a form of water rights at the farmer level: the water certificate was granted as a form of permanent water rights, and water tickets were issued as temporary rights linked to the actual use of water, as discussed in Chap. 6. One of the controversial issues during this period was the promotion and development of “water affairs bureaus” by the MWR, as discussed in Chap. 16. At the heart of the change was the reassignment of water resources management functions between water resources departments and construction departments. Dating back to the early 1990s, with increasing urbanization and urban water issues, the MWR wanted to extend its functions to urban water supply and drainage, which originally were managed by the Ministry of Construction (Shen and Liu 2008). The debate led to a decision in the 2008 governmental restructure which clarified that the establishment of water affairs bureaus should be a matter for local governments rather than central agencies. Many water affairs bureaus had been set up, including in Beijing, Tianjin, Shanghai, Sichuan, and Hainan provinces. The years 1998–2009 were banner years for water resources management. A new concept was developed for negotiating water–human relations. Water resources management became the “dragon head” of the water sector. Modern water resources management legislation and systems were developed, and water rights theory was introduced. Numerous water resources management projects were fully implemented, a national water rights framework was developed, and water-saving and water resources protection initiatives were undertaken. Additionally, investment in the water sector was increased significantly, with the total central infrastructure investment from 1998–2003 2.36 times what it was from 1949–1997, and one-fifth of treasury bonds were invested in the water sector (Wang 2003). In 2008, the national water supply capacity reached 659.1 billion m3 , and irrigation water-use efficiency increased to 0.46 (Chen 2008).

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The limitation of this period, however, was that there was arguably too much focus on exploring theories and undertaking pilot cases, and not enough resources were devoted to expanding these initiatives more widely.

19.3.4 Post-2009: Market-Oriented Final Solution Although there were significant successes in water resources management from 1998–2008, with the decrease in central water investment after the mid-2000s following completion of a series of large-scale infrastructure projects in the mainstreams of China’s major rivers (Wang 2007), key water issues were not effectively addressed. In 2007, blue algae broke out in Tai Lake, severely impacting the drinking water supply of millions of people in Suzhou Prefecture, Jiangsu Province. The case was symptomatic of a serious deterioration in water quality and water ecological systems in China. The water pollution extended from tributaries to the mainstreams, from urban areas to rural areas, from surface water to groundwater, and from land to coastal areas. At the same time, water shortages increased to 40 billion m3 annually, despite the fact that annual water supply capacity had reached 659.1 billion m3 , and the annual overdraw of groundwater reached 22.8 billion m3 (Chen 2009b). As discussed in Chap. 12, an analysis of these problems showed, from the point of view of water resources management, that two issues were the keys: (1) the lack of control over the total volume of water resources development (abstraction) and wastewater discharge, and (2) the limited implementation of water resources management systems coupled with the impacts of the external environment, such as those related to the pursuit of economic development. This raised the question of how to improve the implementation of China’s water resources management systems. The “strictest water resources management strategy” was developed as a final solution to address China’s water issues. The strategy required changes in approach in six key aspects of the water management system: from supply management to demand management, from prioritizing water resource development and use to prioritizing water resource saving and protection, from control to prevention, from overdevelopment and disorderly development to reasonable development, from waste to effective use, and from administrative management to comprehensive management (Chen 2009b). The contents of the strategy are designed to improve and implement water resources management systems and policies, and to define and strictly enforce a set of three management “redlines”: a water resources development redline to control water usage, a water function zone pollutant assimilation redline to control total pollutant discharge into water bodies, and a water-use efficiency redline to control water waste (Chen, 2009b). Following the development of the strategy, a series of guiding and supporting policies were formulated and issued. In 2011, the State No. 1 Document “Decision on Speeding Water Sector Development and Reform” established the framework

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of the strategy, which consisted of a total water-use control system, a water-use efficiency control system, a water function zone pollutant control system, and a water resources management responsibility and assessment system (State Council 2011). In 2012, the State Council issued “Opinions on Implementing the Strictest Water Resources Management Strategy” (State Council 2012). The Opinions clarified the main objectives of the three redlines, developed detailed management instruments, arranged the work tasks, and fulfilled responsibility and assessment system (Hu 2012). In 2013, the Office of the State Council issued “Assessment Methods to Implement the Strictest Water Resources Management Strategy”, which detailed assessment organizations, procedures, contents, and indicators for each province in 2015, 2020, and 2030 (Office of the State Council 2013). Additionally, local governments issued numerous documents and policies similar to those issued at the central level to guide implementation of the strategy within their jurisdictions. At the top political level, challenged by increasing resource restraints, severe environmental pollution, and ecological degradation, the 18th National Congress of the CPC developed eco-civilization construction with the concept of “respecting nature, conforming to nature, and protecting nature”, which had to be incorporated into all aspects and processes of political, economic, social, and cultural development, to develop a beautiful China (Hu 2012). The strategy requires the promotion of resource saving and environmental protection as national policy and insists on saving first, protection first, and a natural restoration-focused policy. In 2017, the 19th National Congress of the CPC developed the strategy of harmonious coexistence of man and nature (Xi 2017). In early 2014, the water strategy of “water-saving first, spatial balancing, systematic management, and both-hand (market and government) functioning” was developed by the central government to deal with new water issues. Although total wateruse stop increase at that time, the new strategy put water-saving ahead of other projects in water resource considerations. The strategy recognizes the importance of balance between water resources and socio-economic development; the source of most water problems; and the inter-linking among factors in an ecosystem, such as mountains, water, land, and forests. The strategy requires the application of both governmental and market mechanisms in considering the nature of the water sector in China. In 2014, following the national policy to deepen reform, the MWR issued “Guidance to Deepen Water Sector Reform”. The Guidance required to fasten governmental function transform and made the market play a decisive role in resource allocation. In the public-interest, in describing the fundamental and strategic roles of the water sector, the Guidance insisted that the water sector should be developed mainly by the government, but more extensive roles could be played by the market. Then the document listed the key areas to be reformed, including water administrative functions, institutions, water pricing and water markets, river course management, investment, water infrastructure construction and management institutions, rural water resources management, and water legislation. Some tasks are outside of the functions of the MWR (2014).

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Following that was the national application of the river/lake chief system in 2016, as discussed in Chap. 11, and natural resources asset management, as discussed in Chap. 13, to develop ownership rights, water resources fee-to-tax reform, and then the most important one is the restructure of the MWR in 2018. According to the general arrangement of resources tax and fee reform, the water resources fee-to-tax reform was piloted in Hebei Province and extended to the other nine provinces in 2017. In 2020, the MWR requested that non-piloted provinces prepare their applications. The 2018 governmental restructure will have a long-term impact on water resources management in China. As discussed in Chap. 3, the 2018 institutional design is primarily just an interim arrangement. The final copy will depend on the reform. But the first step has broken the long-term traditional recognition and arrangement of the water sector, at both administrative and river basin levels. In 2019, with the setting up of a new water organization after revisiting the 2014 water strategy, the MWR realized that the new strategy focuses on the transition from changing and conquering nature to regulating human behavior and correcting human mistakes. In terms of water resources management, the strategy states that water saving is the premise of water resources development, use, protection, allocation, and regulation. It also specifies three types of relationships shall be well-handled: the relationships between water resources and socio-economic development to implement demand decided by resources, between water resources and other elements in the ecosystem, and between the government and the market (E 2019). Therefore, the key tasks of the water sector will be filled the weak point for infrastructure and strengthened sectoral management. The reasons are that the key water problems have been changed from quantity at a lower level to quality at a higher level, both in water and its sectoral services. The public has higher demands for water quality, a healthy water ecosystem, and an amenable environment. At present, there are critical imbalances and inadequacies in the water sector, such as imbalances between socio-economic development and water supply capacity, between water demand and water resources holding capacity, and between water resource development and protection of other ecological elements, as well as infrastructure development between rural and urban areas and among regions in the country. The inadequacies exist in water resource saving, allocation, and regulation and in water market applications. Investigating the causes of these problems reveals that, in addition to non-human factors, misunderstanding and misbehavior are the keys, resulting in overly loose supervision and management. This conclusion is the same as that reached in 2009 when the strictest water resources management strategy was developed (E 2019). Thus, the fields to strengthen sectoral management are developed. These fields include river and lake management, water resources management, water infrastructure management, water and soil conservation management, water resources capital management, and water administrative sectoral management. River and lake management is dependent on the river and lake chief system to supervise both river courses and water bodies. Water resources management focuses on the strictest water resources management strategy but with an emphasis on water saving (E 2019).

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After 40 years, water resources management has finally become one of two components in the water sector, the counterpart to water infrastructure. Of course, there are many developments in terms of content. Today, a modern water resources management system has been fully established in China. The system can respond to the various water issues caused by external social and economic changes and to internal water sector development.

19.4 Outlook In reviewing water resources management policy in the past 40 years in China, it could be said that water policy is struggling in the transformation from water sector policy to water resources policy, from development policy to management policy, from “hard” infrastructure policy to “soft” regulatory policy, from economic-focused to social-focused and ecological-focused. During this process, the policy has experienced several fluctuations, but the role and increasing importance of water resources management have steadily become more apparent. Now, China has put in place a modern water resources management system incorporating market mechanisms with governmental administration, but it is facing a critical challenge in developing an advanced water resources management policy. In forecasting water resources management in China, the following factors might be significant in the near future, based on the author’s understanding. More emphasis on water resources management With the achievement of peak water use in the country, a signal of ending largescale water project construction, the key task to improve the sector and quality are to strengthen water resources management. After 40 years, both sector and water resources, as well as social and economic development, are required to improve water resources management. But the focal fields for water resources management will be changed by time and water issues. More focus on implementation Since the 2002 Water Law, no new water resources management system has been introduced (river and lake chief is a water resources manager system, not a water resources management system) in China. This demonstrates that water resources management system development in China was almost completed in the 25 years following 1978. However, the implementation of this system is quite problematic and weak. It could be said that the strategies developed in the last 10 years, including the strictest water resources management strategy and river and lake chief, all aim to improve the developed system implementation. In the future, this process will continue, and implementation improvement will be the focus of water resources management.

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Emphasis on both macro- and micro-management During the 40 years that followed 1978, China used the first 30 years to develop micro-level water resources management systems, such as water-use quotas, planned water use, abstraction permits, and water resources fees, and the last 10 years to apply macro-level systems, such as river basin allocation and total water-use volume control. Until now, the connection and integration between macro-level and microlevel systems have been weak and poor. Therefore, both micro- and macro-systems will be strengthened to improve the connection between systems. Continuing institutional reform Since 2018, water-related key functions have been grouped into five categories: property rights of water resources, water resources management, water infrastructure management, water quality management, and emergency management. The efficiency and effectiveness of the current institutional arrangement needs to be verified over time. In this process, problematic arrangements will be corrected, and institutional reform in the water sector will continue. More challenges to integrated water resources management Under the current institutional structure, coordination and integrated water resources management will be a challenge. Over the past 40 years, China has applied institutional reforms to solve the coordination problems in the sector. But the 2018 institutional reform is based on key functions rather than on a view of the water sector. Therefore, both intra-sector and out-of-sector coordination will be a challenge. Out of the sector, more water agencies will be involved with other sectors, such as land and forest sectors. In the water sector, an emerging issue is the coordination between quality and quantity, ownership rights and use rights management, and contingency management and normal management. River basin management in a Chinese context China adopts a middle way to deal with river basin management and jurisdictional management. In this combination approach, river basin management is weaker than jurisdictional management. This is easy to understand because river basin management in China is not a part of the administrative system. After the 1988 Water Law, China tried to strengthen river basin management; now, after almost 20 years of the 2002 Water Law, China has found a way to balance river basin management and jurisdictional management. The requirement to strengthen river basin management mainly comes from water issues. Given that the total water use has been stable, the regional water conflicts will be not intensified. To some extent, this reduces the demand for management activities at the river basin level, but in other respects, water quality and ecosystem protection at the river basin level are uncertain. A long process for water rights system development Water rights reform in China has completed only the framework design and pilot over the past 20 years. From a theoretical perspective, water rights have been clearly

19.4 Outlook

449

understood by water professionals and managers. But from a practical perspective, the implementation of the system is far from a sound water rights system, such as those in Australia. This means water rights system development in China will be a long process, a process that might extend another 20 years or more into the future. In one aspect, the realization of the zero-increase goal in total water use decreases the immediacy of a water rights system, compared to that at the end of the 1990s. In other aspects, water rights is a market mechanism that will continue to progress under general market-oriented reform. In the meantime, with the strengthening of water resources ownership rights, the water rights system must be promoted. Under the current step, the development of a modern and advanced water rights system will require more time and efforts, compared to those works to introduce the system. Continuing water pricing reform Water pricing has been applied as an efficient, simple, and frequently used instrument since 1980. China has developed an advanced water pricing framework which can incorporate resource value, reflect cost, and be accountable for environmental loss. In the last 40 years, the focus of each reform has varied with socio-economic development and water resources issues, although the general direction has gradually been from an economic aspect to a social and then eco-environmental aspect. Each reform did not realize the target. Water pricing reform will have to continue into the future. Strengthening of groundwater management Groundwater management will be an area of emphasis in the near future, as a response to severe problems in both quantity and quality and poor management practices. International experiences, however, even in the developed countries, provide many lessons. Thus, the development of groundwater management systems will also be an exploration process. With respect to the varieties of groundwater and their development, local practices will be promoted. Water quality and water ecological management as a new focus International experiences show that water quality management and then waterbased ecological system management will be the next steps in water resources management after China becomes a middle-developed economy. Quality-focused and ecosystem-based water resources management will require innovations in both ideas and management systems. Until now, China has not yet developed. Valuation of water resources and increased cost to use water resources With the introduction of water resources asset management and the establishment of water rights ownership and its rights holder, a mechanism has been developed for realizing benefits from the transfer of water rights from owner to user. The water resources fee/tax can be regarded as the benefit gained by the water resources owner from transferring water-use rights. Given this, with the establishment of water resources valuations, the cost to obtain and use water resources will increase. To some extent, this provides increasing space for water resources tax regulation.

450

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Return to the management of water resources rather than of the manager After a period of time, water resources management shall be returned to resources, rather than the resources manager. It is believed that the water resources manager accountability system developed in the strictest water resources management strategy and the river and lake chief system is a short-term strategy aimed at improving water resources management and system implementation, rather than being aimed at managing the manager. Therefore, with the improved implementation of the water resources management system, the water resources manager system will be retired.

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Index

A Agricultural water resources management, 307, 311–324, 329, 330, 333, 334, 336, 338–340 Agricultural water rights reform, 329, 330 A leadership management system, 241, 251, 252 Allocation target change, 302 Ancient China, 59, 60 Annual/seasonal framework, 113, 127 Aquifer management, 175, 193, 194, 196

B Bottom-up and top-down approach, 241, 250, 252, 303

C Climate change and water resources, 409, 410 Collective use rights, 129, 135, 136, 140 Complexity, 56, 107, 147, 151, 260, 326 Comprehensive agricultural water pricing reform, 156, 157, 326 Conflict of MNR, 275, 276, 289 Cost-recovery, 143, 145, 154–165, 168, 170–172, 233, 325, 329 Countermeasures to climate change, 424

E Economic rationality, 221 Environmental flow definition and management, 361

Environmental flow research and management, 361, 362, 406 Evidence and estimates, 409

F FDZ and RDZ, 175, 183, 184, 188, 193, 194, 196

G Groundwater management, 45, 46, 50–57, 69, 70, 147, 153, 175, 183–186, 188, 190–196, 269, 332, 337, 340, 355, 449

H Hydrological elements and water resources, 10 Hydrology, 1, 6, 17, 18, 23, 105, 256, 285, 309, 310, 410, 436, 439

I Improving benefits, 435 Institutional reform, 67, 74, 102, 155, 156, 158, 170, 184, 277, 284, 289, 307, 317–320, 325, 326, 329, 333, 338, 339, 344, 355, 425, 435, 448 Integrated urban and rural water affairs management reform, 343, 346, 348, 358 Integrated water resources management, 66, 67, 71, 229, 235, 237, 431, 443, 448

© The Editor(s) (if applicable) and The Author(s), under exclusive license to Springer Nature Switzerland AG 2021 D. Shen, Water Resources Management of the People’s Republic of China, Global Issues in Water Policy 26, https://doi.org/10.1007/978-3-030-61931-2

453

454 J Jiaojiang River, 361, 363, 365–373, 385, 386, 406 Jurisdictional management and river basin management, 85, 109, 110

L Legal framework, 93, 94, 129, 133, 136, 140, 199, 201, 204, 219, 256

N National unified approach, 85, 108, 110

O Overlapping function, 199, 218, 219 Ownership rights, 31, 129, 130, 133, 134, 136, 140, 275–282, 284–287, 289, 446, 448, 449

P Pollutant discharge fee/tax, 144, 146, 165

R Recycled water use management, 221, 231, 234, 237, 240 Redefining water-human relationship, 431, 440 Regional water rights, 126, 129, 133, 136, 137, 140 River and lake chief, 207, 241, 251, 252, 435, 446, 447, 450 River basin and regional framework, 115 River basin context, 199, 216, 218, 219, 239 River basin management organization, 106, 107, 208, 213, 442 Role of water sector, 59, 63, 80, 130, 265

S Safety, 22, 30, 70, 73, 79, 106, 215, 221, 230, 237, 238, 240, 246, 254, 259, 264 Scattered management system, 70, 175, 196, 199 Sectoral approach, 199, 218, 219 Small farming, 340 Strictest water resources management strategy, The, 42, 132, 235, 245, 250, 253, 257, 261, 266, 268, 270, 273, 280, 435, 444–447, 450

Index System aggregation, 241, 250, 252 System design, 25, 26, 35, 43, 56, 192, 251 System relationship, 25, 46, 49–57, 193

T Technical and managerial linkage, 291, 304, 306 Three redlines of water resources management, 245, 253, 261, 265, 445

U Uneven distribution, 1, 15, 23 Urban water issues, 344, 348, 443 Urban water supply tariff, 144–146, 148, 152, 158, 159, 161, 163–165, 171, 218

W Wastewater collection and treatment tariff, 144, 146, 162, 171, 218, 264, 439 Water abstraction, consumption and use, 41, 113, 124, 127 Water abstraction rights, 29, 31, 125, 126, 129, 130, 133–135, 137, 140, 281, 288 Water environmental protection, 68, 75, 94, 243 Water function zone pollutant assimilation redline, 132, 245, 253, 261, 264, 265, 444 Water infrastructure construction, 59, 67, 69, 74, 82, 265, 351, 355, 424, 445 Water policy, 144, 155, 222, 307, 338, 424, 431, 436, 447 Water pollution, 22, 23, 38, 39, 73, 92, 93, 95, 96, 103, 107, 135, 163, 166, 167, 199, 201–207, 210–215, 218, 221, 222, 229, 231, 232, 236, 241, 242, 244, 245, 250–252, 254, 255, 266, 271, 307, 350, 351, 355, 358, 362, 425, 426, 431, 438, 441, 444 Water pricing framework, 143, 144, 148, 449 Water quality management, 46, 74, 82, 175, 184, 192, 194, 196, 199, 201, 203– 210, 212, 213, 215–219, 234, 431, 448, 449 Water resources allocation, 26, 28, 29, 31–33, 36, 37, 40– 43, 46, 48–57, 64, 66, 68, 69, 71, 77, 81, 93, 96, 101, 104, 109, 115–117, 119– 124, 127, 130–132, 137, 139, 169, 231,

Index 232, 236, 258, 261, 272, 273, 287, 288, 293, 296, 297, 304, 305, 313, 315, 361, 362, 386, 392, 393, 404–406, 424, 434, 437, 441, 442 allocation and regulation, 25, 113, 114, 116, 122, 124, 127, 130, 291, 297, 302–306, 351, 354, 443 allocation and scenarios, 386, 388, 404 assess, 176, 180, 186, 195, 254, 269, 436 asset management, 132, 275, 449 development, 1, 10, 15, 22, 23, 29–32, 38, 41, 43, 46, 49, 60, 62, 63, 66, 68, 70– 74, 80, 81, 86, 88, 89, 93, 95, 99, 100, 106, 108, 109, 116, 131, 186, 187, 216, 257, 260, 271, 308, 317, 322, 323, 334, 355, 362, 410, 426, 435–438, 440–442, 444, 446 development and use, 15, 25, 27, 41, 46, 50, 54, 56, 71, 72, 81, 130, 135, 270–272, 432, 434, 439, 441 development redline, 132, 253, 261, 444 fee/tax, 29, 31–37, 42, 44–46, 49–56, 70, 72, 77, 96, 120, 121, 123, 125, 135– 137, 140, 144, 147, 148, 150–153, 157, 160, 171, 175, 189, 190, 192, 193, 196, 203, 218, 233, 237, 256, 269, 280, 288, 304, 314, 324, 334, 351, 433, 434, 437, 439, 442, 446, 448, 449 management, 25, 26, 28, 29, 31–33, 35– 37, 40, 42–44, 46–57, 59, 61, 63, 66, 67, 70–74, 77, 80–82, 93, 104, 114, 131, 132, 135, 139, 147, 150, 153, 171, 176, 183–185, 189, 192–195, 219, 235, 241, 251–253, 255–261, 265, 266, 268–273, 275, 285, 291, 302, 306, 311–314, 316, 320, 343–347, 349, 350, 353, 355, 358,

455 409, 424–426, 431, 433–435, 437, 439, 442–450 management framework, 25, 57, 311 management institution, 26, 59, 74, 108, 110, 155, 170, 258, 313, 318, 442 management model, 361, 406 management system, 103, 108, 232, 251, 304 ownership rights system, 31, 133, 275, 276, 278, 279, 286, 446, 449 regulation, 31, 36, 37, 41–43, 46, 50, 55, 57, 71, 77, 104, 105, 122, 131, 137, 190, 296–298, 303, 304, 443 Water rights certificates and water tickets, 129, 140 Water shortage, 21–23, 29, 34, 67, 86, 93, 117, 130, 147, 151, 152, 156–158, 168, 175, 176, 221, 230–233, 236, 245, 250, 254, 255, 260, 263, 298, 301, 315, 326–328, 332, 336, 352, 356, 405, 409, 411, 422, 425, 426, 436, 438, 441, 444 Water supply tariff from hydraulic engineering, 144, 145, 148, 154–157, 160, 170, 324, 325 Water trade, 113, 125–127, 133, 137, 138, 280, 291, 301, 306, 337 Water use efficiency redline, 132, 253, 261, 444

Y Yellow River basin, 10, 41, 86, 107, 125, 130, 131, 291, 292, 302, 304, 306, 412, 415, 418, 420, 422, 437