6.2 Water Rights Legal Framework
135
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
135
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