The country's second largest relocation project to make way for piped water from south to north China began on Sunday when the first batch of more than 300 villagers in Henan province moved into their new homes.

More than 330,000 people in Henan and neighboring Hubei provinces will be transplanted from their homes to make way for the construction of the Danjiangkou Reservoir, one of the three routes of the massive South-North Water Diversion Project, according to the office in charge of the project.

A baby waves goodbye to his hometown before being relocated on Sunday in Xichuan county, Danjiangkou, Henan province. Niu Shupei.

The water diversion project, consisting of the eastern, middle and western routes, will divert water from the country's water-rich south, mainly the Yangtze River to the dry north.

The work is part of the world's largest hydropower project. Some 300 million people will benefit from the colossal project, which will connect four major rivers in China.

"This is the second largest project after the Three Gorges Dam's relocation," said Zhang Ye, the office's deputy director.

At least a million people will be moved from their homes to make way for the project's construction.

Danjiangkou Reservoir is located on Hanjiang River, the Yangtze River's largest branch. It was built in 1958 as the major water supply project to Beijing, Tianjin, Henan, Hebei provinces.

Due to the increasing water level of the reservoir, the nearby residents have to move away.

A 58-year-old farmer, Ji Yanqing, got 2,000 yuan ($300) compensation and a key to a fully equipped modern flat near the downtown area.

He is happy about the new life but still feels sad being apart from his old friends who have moved to other relocation spots.

"I have no idea when I can meet my friends again," he was quoted as saying by China News Service.

Every house in the new community has tap water and a fixed-line telephone. And the residents can go to new schools and clinics nearby.

"My mom said the school is much better than in our old home," said a 10-year-old boy Heng Peng.

The construction of the first phase of the eastern and middle routes began six years ago.

Since then, more than 40 projects have been under construction, costing 58.97 billion yuan ($8.63 billion). The projects are more than 53 percent complete. The first phase of the east and central lines is scheduled to be finished in 2013 and 2014 respectively.

The western route is still in the blueprint stages. That route will replenish the Yellow River with water diverted from the upper reaches of the Yangtze River by creating huge tunnels in the high mountains of western China.

(China Daily August 19, 2009)