Addressing China's Water Scarcity: A Synthesis of Recommendations for Selected Water Resource Manage

China faces a major challenge in managing its scarce water resources to sustain economic growth in the years ahead. This report provides an overview of China's water scarcity situation, assesses the policy and institutional requirements for addressing it, and recommends key areas for strengthening and reform.

The issues covered in the report are water governance, water rights, water pricing and affordability, watershed ecological compensation, water pollution control, and emergency prevention. The report's recommendations identify the key measures needed to effectively address these issues.

For years, water shortages, water pollution, and flooding have constrained growth and affected public health and welfare in many parts of China. Given continuing economic trends and population growth, the pressures on the country’s water resources are likely to worsen.

The widening gap between water supply and demand, along with deteriorating water quality caused by widespread pollution, suggests that a severe water scarcity crisis is emerging.

Addressing China's Water Scarcity addresses the emerging water crisis and the need for China to reform and strengthen its water resource management framework. It covers key issues including water governance, water rights, water pricing and affordability, watershed ecological compensation, water pollution control, and emergency prevention, and it identifies the measures needed to effectively move forward in these areas. 

In line with the broad strategy of developing a market economy, the book concludes that the focus of the reform needs to be on clarifying the role of and relationships among the government, markets, and society; improving the efficiency and effectiveness of water management institutions; strengthening the compliance and enforcement of water pollution control; and fully embracing and using marketbased instruments as much as possible.

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Jian Xie
with Andres Liebenthal, Jeremy J. Warford, John A. Dixon, Manchuan Wang, Shiji Gao, Shuilin Wang, Yong Jiang, and Zhong Ma

2009 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: 202-473-1000
Internet: www.worldbank.org
E-mail: feedback@worldbank.org

EXECUTIVE SUMMARY
For years, water shortages, water pollution, and flooding have constrained growth and affected public health and welfare in many parts of China. Northern China is already a water-scarce region, and China as a whole will soon join the group of water-stressed countries. The combined impact of the widening gap between water demand and limited supplies and the deteriorating water quality caused by widespread pollution suggests that a severe water scarcity crisis is emerging.

China’s leadership is aware of the worsening water situation, and is committed to transforming China into a water-saving society. The 11th Five-Year Plan (2006–10) sets a number of policy goals and priorities for water resource management, such as (a) adopting a more unified or better coordinated management system; (b) shifting from supply-side to demand-side management; (c) integrating river basin management with regional management; and (d) establishing a preliminary system of water rights trading.

To date, however, the increasing scarcity of water resources has not been effectively managed. Many national and local water resource management and water pollution control plans have not been fully implemented and many targets, including water pollution investment targets, have not been achieved.

The economic costs of water pollution and scarcity are high. Water pollution poses a serious threat to public health and causes major economic and environmental losses, estimated by the Chinese government at the amount equivalent to about 1.7 percent of GDP or more in 2004. ...

INTRODUCTION
BACKGROUND
For years, water shortages, water pollution, and flooding have constrained growth and affected public health and welfare in many parts of China.

Given continuing trends in economic and population growth, as well as the current pattern of industrialization and urbanization, the pressures on the country’s water resources are bound to increase. The impact of growing water demand—combined with limited supplies and the deteriorating water quality caused by widespread pollution—suggests that a severe water scarcity crisis is emerging if no decisive actions are taken soon.

China’s per capita natural freshwater resources amounted to 2,156 m3 in 2007, and are expected to decline to 1,875 m3 as its population rises to a projected peak of 1.5 billion by around 2033. In North China, the amount is already much lower, at about 700 m3 per person, and the amount of exploitable water is much smaller. The scarcity is greatest in the Hai River basin, with 120 million inhabitants, including Beijing and Tianjin, which has only about 300 m3 per person.

Based on standard definitions, North China is already a water-scarce region, and China as a whole will soon join the group of waterstressed countries.2 Specifically, about 400 of China’s 660 cities are reportedly short of water; of those, 108 cities, including megacities like Beijing and Tianjin, are facing serious water shortages. ...

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