Briefings on the Opinions of the State Council on Implementing the Strictest Water Resources Management System

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Ministry of Water Resources

P. R. China

(16 Feb 2012)

On 12 January 2012, the State Council promulgated The Opinions of the State Council on Implementing the Strictest Water Resources Management System (hereinafter referred to as "Opinions"), which is the overall layout and specific arrangements that the State Council has made since the 2011 No.1 Document and the Central Work Conference on Water Conservancy explicitly required the implementation of the strictest water resources management system, and a principal document guiding water-related efforts in China at present and for a period to come.

1. Necessity of the Opinions

Water is the source of life, key to production and basis of ecology. Since the founding of P. R. China, especially since the reform and opening up, development, utilization, distribution, conservation, protection and management of water resources have registered remarkable accomplishments and made impressive contributions to socioeconomic development and peaceful/content life and work of the people. However, we must be aware that a large population, limited water resources and uneven temporal and spatial distribution of water resources remain the basic national situation and water regime of China, which, coupled with prominent issues such as water shortage, extensive water use, severe water pollution and deterioration of water ecology, have become major bottlenecks constraining sustainable socioeconomic development in China. Per capita water resources in China only record 2,100 m3, a mere 28% of the world average. Water supply and demand conflict remains intensive with annual national average water shortage reaching more than 50billion m3. Excessive development of water resources, already a prominent problem nationwide, has far exceeded the carrying capacity of water resources in some areas, causing a number of ecological and environmental problems. Extensive pattern of water use still prevails, leading to severe waste of water. At present, GDP output per 1 m3 water in China only accounts for 1/3 of the world average, however, water consumption per RMB10,000 industrial value added reaches 120 m3 (calculated on the basis of the 2000 constant price, similarly hereinafter), which is 3-4 times the figure in developed countries. Effective water use coefficient of farmland irrigation water records a mere 0.50, far behind the world advanced level of 0.7-0.8. Water bodies are severely polluted, with water quality compliance rate in water function areas remaining at a low level of 46%. Along with in-depth industrialization and urbanization, the demand for water resources will keep growing in a fairly long time to come, giving rise to more intensive conflict between water supply and demand and accordingly an ever more severe situation of water resources in China.

Solution to the increasingly complex water resources problems and realization of efficient use and effective protection of water resources require good systems, good policies and relevant reform. In line with the new situation and new requirements of reform and development of water conservancy and on the basis of summarizing practical experiences of water resources management in China, the 2011 No.1 Document and Central Work Conference on Water Conservancy have explicitly required the practice of the strictest water resources management system, and established the "Three Red Lines" for such management, i.e., control of development and utilization of water resources, control of water use efficiency and restriction of pollutants in water function areas, thereby promoting a better match between socioeconomic development and the carrying capacities of water resources and the water environment from the institutional perspective. According to the Central Government's strategic decision on water resources management, the State Council released the Opinions to make overall layout and specific arrangements for implementation of the strictest water resources management system, further define major targets for water resources management following the "Three Red Lines", put forward specific management measures, deploy work tasks on all fronts, and clarify division of duties. All these will surely push forward full practice of the strictest water resources management system, promote rational development, utilization, conservation and protection of water resources and safeguard sustainable socioeconomic development in China.

2. Framework and Main Content of the Opinions

The document contains 5 sections and 20 points. Section 1 puts forward the overall requirements for implementing the strictest water resources management system, covering the guiding philosophy, basic principles, and main targets. Sections 2-4 are the main body of the document, specifying main measures for water resources management according to the "Three Red Lines", i.e., control of development and utilization of water resources, control of water use efficiency and restriction of pollutants in water function areas. Section 5 emphasizes implementation of accountability and improvement mechanisms to ensure effective implementation of the strictest water resources management system.

2.1. Section 1: Guiding Philosophy, Basic Principles, and Main Targets

The Opinions, based on the theme of scientific development and focusing on the main line of speeding up the transformation of economic growth pattern, puts forward the guiding philosophy of implementing the strictest water resources management system, i.e., further implement the Scientific Outlook on Development, intensify full-process management of water demand and supply with priority attached to allocation, conservation and protection of water resources, strictly control total quantity of both water consumption and pollutant discharge into rivers and lakes and comprehensively improve water use efficiency through system improvement, accountability, capacity building and reinforced regulation, and accelerate the construction of a water-saving society, so as to promote sustainable use of water resources and transformation of the economic development pattern, match socioeconomic development with carrying capacities of water resources and the water environment and thereby safeguard sustainable socioeconomic development in China.

In line with the Central Government's requirements regarding management of resources and in combination with existing water-related efforts, the Opinions produces the basic principle of "5 Insist" for practice of the strictest water resources management system. (1) Insist on human orientation, i.e., focus on addressing the most direct and most practical water resources issues that are of greatest concern to the people, and ensure drinking water safety, water supply safety and ecological safety; (2) Insist on harmony between man and water, i.e., respect natural rules and rules of socioeconomic development, effectively address the relationship between development and protection of water resources, fix demand according to water supply, match human activities with availability of water and tailor solutions to corresponding water situations; (3) Insist on comprehensive considerations, i.e., coordinate water consumption for domestic, production and ecological purposes, and coordinate the relationship between the upper and lower reaches, between the left and right banks, between the mainstream and the tributaries and between surface and ground water; (4) Insist on reform and innovation: improve the system and mechanisms for water resources management, and refine management methods and approaches; and (5) Insist on tailored practices and categorized guidance, and give attention to feasibility and effectiveness of system implementation.

The Opinions explicitly puts forward the main targets for implementation of the strictest water resources management system. The "Three Red Lines" for water resources management are defined in face with three prominent problems of excessive development and extensive use of water resources and sever pollution of water bodies. The purposes of the "Three Red Lines" include strictly controlling excessive growth of total water use quantity, effectively improving water use efficiency and strictly controlling total pollutants discharged into rivers and lakes. Given the fact that water consumption in China will peak in 2030, and in line with the principles of rationalizing water demand, enhancing water saving and appropriately tightening relevant controls, the Opinions takes water resources management targets of the 2010-2030 National Comprehensive Plan for Water Resources (hereinafter referred to as "Plan") as the control targets for the "Three Red Lines", i.e., controlling total quantity of water consumption nationwide within 700billion m3 by 2030, attaining or approaching the world advanced level of water use efficiency, reducing water consumption per RMB10,000 industrial value added to below 40 m3 and raising effective water use coefficient of farmland irrigation water to above 0.6 by 2030, and controlling total quantity of major pollutants discharged into rivers and lakes within the pollutant absorption capacity of the water function areas and raising water quality compliance rate in such areas to higher than 95% by 2030. To attain the above targets and with reference made to the 12th Five-Year Plan for National Economic and Social Development, No. 1 Document of 2011, and the Plan, the Opinions further specifies periodical targets for the 12th Five-Year Plan period and by 2020, i.e., (1) control total quantity of water consumption nationwide below 635 billion m3 by 2015 and below 670 m3 by 2020 respectively; (2) reduce the 2010 level of water consumption per RMB10,000 industrial value added by 30% by 2015 and to below 65 m3 by 2020 and raise effective water use coefficient of farmland irrigation water to above 0.53 by 2015 and higher than 0.55 by 2020; and (3) increase water quality compliance rate in key water function areas of rivers and lakes to over 60% by 2015 and above 80% by 2020. Furthermore, by 2020, water quality compliance rate for water supply in all urban and rural areas should reach 100%.

2.2. Sections 2-4: Main Measures for Enhancing Water Resources Management according to the "Three Red Lines"

Centering around the "Three Red Lines", the Opinions specifies relevant institutional requirements and puts forward detailed work measures vis-à-vis control of development and utilization of water resources, control of water use efficiency, and restriction of pollutants in water function areas.

To strengthen the control of development and utilization of water resources and strictly implement total water use quantity control, 6 measures need to be adopted. (1) Strictly implementing planning and enhance water resource assessment. Efforts for water resource assessment should be intensified in the planning process and layout of construction projects. Preparation of plans for national economic and social development and urban master plans and layout of major construction projects should match the local conditions of water resources and requirements of flood control. (2) Strictly control total quantity of water withdrawal in river basins and administrative regions. Efforts shall be accelerated to develop programs for distribution of water flows along major rivers and establish indicator systems for control of total water withdrawal and consumption quantities that cover river basins and administrative regions at provincial, municipal and county levels. (3) Strictly implement the permit system for water withdrawal. In areas where total water withdrawal and consumption quantities have reached or exceeded the control indicators, approval shall be suspended regarding construction projects that will increase water withdrawal. Where total water withdrawal and consumption quantities approach the control indicators, approval shall be restricted regarding construction projects that will increase water withdrawal. (4) Strictly practice paid use of water resources. Collection, use and management of water resources fees shall be tightened via rational adjustment of collection criteria and expansion of collection coverage. (5) Intensify management and protection of groundwater. Control of total withdrawal, consumption and water table of groundwater shall be practiced to enhance dynamic monitoring of groundwater. (6) Reinforce unified regulation of water resources. Efforts shall be exerted to develop and improve regulation schemes, emergency regulation plans and general regulation plans for unified regulation of water resources.

To enhance control of water use efficiency and promote the construction of a water-saving society on all fronts, three measures are requisite. (1) Improve management of water saving on all fronts, so that water saving will penetrate into the entire process of socioeconomic development and the daily life and normal work of all people and that systems and mechanisms conducive to water saving will be established and improved; (2) Reinforce quota management of water consumption by making timely amendment to water use quota, practicing planned water use management against major water consumers such as those under water withdrawal permits administration, and requiring main parts of new construction, renovation and expansion projects to simultaneously design, construct and commission water saving facilities; and (3) Accelerate water-saving technological renovation, i.e., set mandatory water saving criteria, forbid the production and selling of products that fail to comply with such criteria, enhance water saving in agriculture, improve and implement policy measures such as industrial support, technical services and fiscal subsidies to water-saving irrigation, accelerate upgrading of industrial water-saving technologies and domestic water saving, encourage and actively develop non-conventional water sources such as waste water treatment and recycling, development and utilization of rainwater and slightly salty water, and desalination and direct use of sea water.

To put total quantity of pollutant discharge into rivers and lakes under strict control, it is imperative to adopt three measures: (1) Enhance monitoring and management of water function areas, in which regard efforts need to be made to improve the system for supervising and managing the water function areas, establish a water quality compliance system for these areas, apply more stringent criteria to determine pollution carrying capacity of water bodies, effectively enhance prevention and control of water pollution and strictly supervise emissions into rivers and lakes. (2) Intensify protection of the sources of drinking water, i.e., define protected areas for sources of drinking water and enhance safety compliance level of key areas that are sources of drinking water; and (3) Promote protection and restoration of water ecological systems. Development and utilization of water resources should maintain reasonable flows of rivers, reasonable water levels of lakes, reservoirs and groundwater and healthy ecology of rivers. Efforts should be exerted to prepare national plans for protection and restoration of water-body ecological systems, conduct health assessment of key rivers and lakes nationwide, and establish and improve compensation mechanisms for water ecology.

2.3. Section 5: Safeguard Measures

To ensure effective implementation of the strictest water resources management system, the Opinions expresses detailed requirements vis-à-vis the five safeguard measures, i.e., establish the accountability and performance assessment system regarding management of water resources, reinforce the system for water resources monitoring, improve the water resources management system, refine input mechanisms for water resources management, and enhance policies, regulations and public supervision mechanisms. The Opinions makes it clear that major indicators relating to development, utilization, conservation and protection of water resources shall be incorporated into the system for integrated assessment of local socioeconomic development, with persons in charge of people's governments at and above the county level to be held accountable in the overall sense to water resources management and conservation in their respective administrative regions. The State Council shall assess the implementation of major indicators in provinces, autonomous regions and municipalities directly under the Central Government, with specific assessment arrangements to be implemented by the MWR together with related authorities and assessment results to be handed over to authorities in charge of government officials as an important basis for integrated performance assessment of local government leaders and senior management of related enterprises.

3. Implementation of the Document

Practice of the strictest water resources management system is a strategic deployment by the CPC and the State Council. We shall rely on firm leadership of party committees and governments at all levels, hard effective efforts of the water sector and coordination and support from all social communities to enable such practice a full reality, realize its policy effect as soon as possible and promote sustainable utilization of water resources and transformation of economic development pattern in China.

(1) Enhance leadership and improve accountability. Party committees and governments at all levels and concerned government authorities should closely follow the decision and deployment of the Central Government in both mindset and action. They should diligently study and develop implementation plans for the Opinions in combination with their respective local and departmental situations, whereby they shall define targets and tasks, identify key procedures, highlight work priorities, substantiate work measures, detail targets and tasks to job-specific components and hold individuals accountable to relevant duties and measures, and thereby give rise to a work layout that features implementation at all levels and each level supervising its immediate inferior level in its work.

(2) Increase input and improve systems. Governments at all levels need to expand their input channels and establish stable long-effect input mechanisms for management of water resources to ensure operating funds for conservation, protection and management of water resources. Further efforts are required to improve the water resources management system that combines river basin management with administrative regional management so as to enhance unified planning, management and regulation of water resources at the basin level. Meanwhile, management of water resources in urban and rural areas should be further unified while integrated reform of water affairs need to be enhanced so that urban-rural water supply, integrated use of water resources, harnessing of water environment, flood control and logging drainage can enjoy comprehensive planning and coordinated implementation and that allocation of water resources can be optimized.

(3) Reinforce inspection and intensify supervision. Efforts should be focused on checking whether the Three Red Lines are established and conducting regular reviews about the compliance with the four indicators, i.e., total quantity of water consumption, effective water use coefficient of farmland irrigation water, water consumption per RMB10,000 industrial value added, and water quality compliance rate in water function areas, and as to whether the accountability and performance assessment system for water resources management is effectively implemented, and whether the strictest water resources management system is effectively put into place. Based on routine checks and sample reviews, specialized examinations targeting water saving and conservation shall also be organized to urge the implementation of various policy measures and smooth realization of regional control indicators.

(4) Extensive publicity efforts to create an enabling environment. With full use of national and local mainstream media, key publicity campaigns will be organized to facilitate in-depth understanding of the Opinions, full disclosure of new measures and new developments relating to the strictest management of water resources, and timely reportage about new local experience and achievements, in the hope that original policies and requirements will be communicated to cadres and the masses alike for more extensive understanding by and support from the whole society and for full embrace of the Central Government's decision and layout by all walks of the society.

Practice of the strictest water resources management system will surely promote the establishment of a better-organized institutional framework, more stringent management measures, clearer targets and better defined accountability for water resources management, and thereby speed up rational development, integrated harnessing, optimal distribution, efficient utilization and effective protection of water resources, which, in turn, will furnish a strong safeguard from the perspective of water resources for long-term steady and relatively fast development of China's economy and society.

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