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15 Agricultural Water Management in Northern China
In 2011, Decision on Speeding Water Sector Development and Reform
promoted comprehensive agricultural water pricing reform according to principles of
promoting water saving, reducing spending by farmers on water, and guaranteeing the
operation of irrigation and drainage projects. The operational and management costs
could be partly subsidized by governmental financial resources. The paper recommended exploring methods for farmers to get preferential tariffs if they remained
within their quota and to pay increasing block tariffs if they exceeded the quota.
15.4.3.3 Comprehensive Agricultural Water Pricing Reform
In consideration of the complexity of agricultural water pricing, in the later 2000s,
the MWR proposed the State Council develop end-use canal system water-saving
stimulating mechanisms, promote comprehensive agricultural water pricing reform,
and establish a mechanism for the sustainable operation of irrigation engineering
infrastructure. In 2007, the State Council agreed to promote comprehensive agricultural water pricing reform and end-use canal system water-saving improvements.
At that time, to develop a scientific and rational water pricing system is, after the
completion of water infrastructure management institutional reform and water-saving
engineering improvement, according to the principles of considering both to promote
water saving and to reduce farmers’ expenditure on water, to stably implement an end
water pricing system consisting of water supply tariff from state-owned hydraulic
engineering and end-use canal system water tariff. In addition, the ability of famers
to pay was analyzed and the volumetric charge was promoted. The development of a
total water-use control and quota management system for agriculture was explored.
Reform continued in the 2010s. The 2011 State No. 1 Document called for
comprehensive agricultural water pricing reform, in accordance with the principle
of promoting water saving, reducing farmers’ water expenditure, and guaranteeing
irrigation and sustainable drainage engineering operations. The document suggested
that the engineering operation and management expenditure could be subsidized by
the financial resources and explored the application of preferential tariffs for in-quota
use and charges for above-quota use.
In 2016, the Office of the State Council issued the Opinion to Promote Comprehensive Agricultural Water Pricing Reform. The document acknowledged that agriculture is the largest water user and offers the greatest potential for water saving, but
that the current agricultural water pricing formulation mechanism and tariff could
not reflect water shortages and eco-environmental costs and promote water saving.
Therefore, the directive required that pricing reform should be connected with other
reforms, including engineering construction, management innovation, financial stimulation, and structural improvement (Office of the State Council 2016). The tasks of
the reform include:
Developing the basis for agricultural water pricing reform
Improving water metering facility. Any metering facility shall be constructed
along with the main engineering. Large- and medium-scale irrigation districts shall
15 Agricultural Water Management in Northern China
In 2011, Decision on Speeding Water Sector Development and Reform
promoted comprehensive agricultural water pricing reform according to principles of
promoting water saving, reducing spending by farmers on water, and guaranteeing the
operation of irrigation and drainage projects. The operational and management costs
could be partly subsidized by governmental financial resources. The paper recommended exploring methods for farmers to get preferential tariffs if they remained
within their quota and to pay increasing block tariffs if they exceeded the quota.
15.4.3.3 Comprehensive Agricultural Water Pricing Reform
In consideration of the complexity of agricultural water pricing, in the later 2000s,
the MWR proposed the State Council develop end-use canal system water-saving
stimulating mechanisms, promote comprehensive agricultural water pricing reform,
and establish a mechanism for the sustainable operation of irrigation engineering
infrastructure. In 2007, the State Council agreed to promote comprehensive agricultural water pricing reform and end-use canal system water-saving improvements.
At that time, to develop a scientific and rational water pricing system is, after the
completion of water infrastructure management institutional reform and water-saving
engineering improvement, according to the principles of considering both to promote
water saving and to reduce farmers’ expenditure on water, to stably implement an end
water pricing system consisting of water supply tariff from state-owned hydraulic
engineering and end-use canal system water tariff. In addition, the ability of famers
to pay was analyzed and the volumetric charge was promoted. The development of a
total water-use control and quota management system for agriculture was explored.
Reform continued in the 2010s. The 2011 State No. 1 Document called for
comprehensive agricultural water pricing reform, in accordance with the principle
of promoting water saving, reducing farmers’ water expenditure, and guaranteeing
irrigation and sustainable drainage engineering operations. The document suggested
that the engineering operation and management expenditure could be subsidized by
the financial resources and explored the application of preferential tariffs for in-quota
use and charges for above-quota use.
In 2016, the Office of the State Council issued the Opinion to Promote Comprehensive Agricultural Water Pricing Reform. The document acknowledged that agriculture is the largest water user and offers the greatest potential for water saving, but
that the current agricultural water pricing formulation mechanism and tariff could
not reflect water shortages and eco-environmental costs and promote water saving.
Therefore, the directive required that pricing reform should be connected with other
reforms, including engineering construction, management innovation, financial stimulation, and structural improvement (Office of the State Council 2016). The tasks of
the reform include:
Developing the basis for agricultural water pricing reform
Improving water metering facility. Any metering facility shall be constructed
along with the main engineering. Large- and medium-scale irrigation districts shall