Laws of the People's Republic of China

The Standing Committee of the National People's Congress

Order of the President of the People's Republic of China

No.74

The Water Law of the People's Republic of China was modified and adopted at the 29th Meeting of the Standing Committee of the Ninth National People's Congress on August 29, 2002, the modified Water Law of the People's Republic of China is hereby promulgated and shall come into force as of October 1, 2002.

President of the People's Republic of China: Jiang Zemin

August 29, 2002

Water Law of the People's Republic of China(the modified edition) ContentsChapter I General Provisions

Chapter II Planning of Water Resources

Chapter III Development and Utilization of Water Resources

Chapter IV Protection of Water Resources, Water Areas and Water Projects

Chapter V Allocation and Economic Use of Water Resources

Chapter VI Settlement of Disputes over Water and Supervision and Inspection of Law Enforcement

Chapter VII Legal Responsibilities

Chapter VIII Supplementary Provisions

Chapter I General Provisions

Article 1

This Law is formulated for the rational development, utilization, preservation, and protection of water, for the prevention and control of water disasters, and for the sustainable utilization of water resources in order to meet the needs of national economic and social development.

Article 2

This Law must be observed in the development, utilization, preservation, protection, and management of water resources and in the prevention and control of water disasters within the territory of the People's Republic of China.

The "water resources" referred to in this Law include surface water and groundwater.

Article 3

Water resources shall be owned by the state. The State Council shall exercise ownership of water resources on behalf of the state. Water in the ponds of rural collective economic organizations and in the reservoirs constructed and managed by rural collective economic organizations shall be used by those organizations.

Article 4

The development, utilization, preservation, and protection of water resources and the prevention and control of water disasters shall be carried out through comprehensive planning, with all factors taken into consideration. The planning shall seek both a temporary solution and a permanent cure, with emphasis on multipurpose use and achieving maximum benefits to take advantage of the multiple functions of water resources and harmonize water use in production and the environment.

Article 5

The people's governments at and above the county level shall strengthen the construction of infrastructures for water conservation that shall be included in plans for national economic and social development.

Article 6

The state shall encourage entities and individuals to develop and utilize water resources according to law, and to protect their legal rights and interests. The entities and individuals developing and utilizing water resources shall bear an obligation to protect water resources according to law.

Article 7

The state shall apply the systems of water licensing and paid use of water resources according to law, excepting collective economic organizations and their members' use of the water in the ponds and reservoirs owned by those organizations. The department of water administration under the State Council shall be responsible for organizing the water license system implementation as well as the nationwide paid use of water resource system.

Article 8

The state shall require strict economy in the use of water, vigorously promote measures for water saving, spread new technology and techniques to conserve water, develop the water-conservation industry and agriculture and service industry, and establish a water-conservation society.

The people's governments at various levels shall take measures to improve the management of water preservation, establish the development and distribution of water-conservation technology, and foster and develop water-preservation industries.

Entities and individuals shall bear an obligation to save water.

Article 9

The state shall protect water resources and adopt effective measures to preserve vegetation, plant trees, grow grass, conserve water sources, prevent and control soil erosion and water pollution, and improve the ecological environment.

Article 10

The state shall encourage and support the research, distribution, and application of advanced technology for the development, utilization, preservation, protection, and management of water resources and the prevention and control of water disasters.

Article 11

The people's governments shall award the entities and individuals that have made outstanding achievements in the development, utilization, preservation, protection and management of water resources and in the prevention and control of water disasters, etc.

Article 12

The state shall, with respect to water resources, adopt a system that organizes the administration by watersheds as well as by administrative areas.

The department of water administration under the State Council shall be in charge of the unified administration and supervision of water resources of the nation.

The watershed authorities, set up by the department of water administration under the State Council, at the important rivers and lakes (as determined by the state) (hereinafter referred to as the watershed authorities) shall, within their respective jurisdictions, exercise the water resource administration and supervision provided for by laws and regulations and authorized by the department of water administration under the State Council.

The departments of water administration in the local people's governments at and above the county level shall, according to the prescribed limit of authorities, be in charge of the unified administration and supervision of water resources within their respective administrative areas.

Article 13

The relevant departments under the State Council shall be in charge of the relevant work for the development, utilization, preservation and protection of water resources.

The relevant departments of the local people's governments at and above the county level shall, according to the division of duties, be in charge of the relevant work to develop, utilize, preserve, and protect water resources.

Chapter II Planning of Water Resources

Article 14

The state shall formulate the strategic plan for water resources of the whole country.

The development, utilization, preservation and protection of water resources, and the prevention and control of water disasters, shall be planned in a unified way on the basis of watersheds or regions. Plans are divided into watershed plans and region plans. Watershed plans include comprehensive watershed plans and special watershed plans; region plans include comprehensive region plans and special region plans.

The "comprehensive plans," as used in the preceding paragraph, shall refer to the overall arrangements, formulated according to the needs of economic and social development and the present situation of the development and utilization of water resources, for the development, utilization, preservation and protection of water resources, as well as for the prevention and control of water disasters. The "special plans," as used in the preceding paragraph, shall refer to plans for prevention of floods, the control of water-logging, irrigation, navigation, water supply, hydro-electric power generation, bamboo or log rafting, fishery, water resource protection, water and soil conservation, prevention and control of sand disasters, and water preservation, etc.

Article 15

The region plan within a watershed shall be subject to the watershed plan, and the special plan shall be subject to the comprehensive plan.

The comprehensive watershed plan and comprehensive region plan, as well as the special plan closely related to land utilization, shall be coordinated with the plan for national economic and social development, the overall plan for land utilization, the overall urban plan, and the plan for environment protection, and shall take account of the needs of the areas and industries.

Article 16

In order to draw up a plan, a comprehensive scientific survey and an investigation and assessment of water resources must be undertaken by the department of water administration of the people' s government at or above the county level jointly with the relevant department at the corresponding level.

The people's government at or above the county level shall improve the construction of the information system on hydrologic and water resources. The department of water administration of the people's governments at or above the county level and the watershed authorities shall strengthen the dynamic monitoring of water resources.

The basic hydrologic materials shall be publicized pursuant to the relevant provisions of the state.

Article 17

The comprehensive watershed plans for important rivers and lakes determined by the state shall be formulated by the department of water administration under the State Council This will be in conjunction with the relevant departments under the State Council and the people's governments of the relevant provinces, autonomous regions, and municipalities directly under the Central Government, and shall be submitted to the State Council for approval. The comprehensive watershed plans and comprehensive region plans for other rivers and lakes running across provinces, autonomous regions and municipalities directly under the Central Government shall be formulated by the relevant watershed authorities in conjunction with the departments of water administration and the relevant departments of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government where the rivers and lakes are located. After the relevant people's governments examine those plans and give their opinions, the plans shall be submitted to the department of water administration under the State Council for examination, which shall, after seeking opinions from the relevant departments under the State Council, submit the plans to the State Council or the department authorized thereby for approval.

The comprehensive watershed plans and comprehensive region plans for rivers and lakes other than those described in the preceding paragraph shall be formulated by the departments of water administration of the local people's governments at and above the county level, jointly with the relevant departments at the corresponding level and the relevant local people's governments, and shall be submitted to the corresponding people's governments or the departments authorized thereby for approval, as well as to the departments of water administration at the next higher level for record.

The special plans shall be formulated by the relevant departments of the people's governments at and above the county level, and shall be submitted to the corresponding people's governments for approval after those departments seek opinions from other relevant departments at the corresponding level. Among these special plans, the formulation and approval of plans on the prevention of floods, and water and soil conservation plans, shall be carried out according to the relevant provisions of the Law on Prevention of Floods and the Law on Water and Soil Conservation.

Article 18

A plan shall be strictly carried out once it has been approved.

When modifying the approved plan is necessary, the modification must be approved by the original approving department in accordance with the procedures for plan formulation.

Article 19

Construction of a water project must be in conformity with the comprehensive watershed plan. With respect to the water projects constructed on the important rivers and lakes (as determined by the state) and the rivers and lakes running across provinces, autonomous regions, and municipalities directly under the Central Government, before the project feasibility reports are submitted for approval the relevant watershed authorities shall examine and give opinions on whether the construction of the water project is in conformity with the comprehensive watershed plan. With respect to the construction of water projects on other rivers and lakes, before the project feasibility reports are submitted for approval, the water administration departments of the local people's governments at or above the county level shall, according to the limit of their authorities, examine and give opinions on whether the construction of water projects conforms to the comprehensive watershed plans. Where the construction of a water project involves prevention of floods, the relevant provisions of the Law on Prevention of Floods shall be observed; where other regions and industries are involved, the construction entity shall seek opinions from the relevant regions and departments in advance.

Chapter III Development and Utilization of Water Resources

Article 20

The development and utilization of water resources shall follow the principle of promoting benefits while eliminating disasters. It shall take into consideration the interests of upstream and downstream areas, of the left and right banks, and of all regions concerned to take advantage of the comprehensive benefits of water resources; it shall also conform to the overall arrangement for the prevention of flood.

Article 21

The development and utilization of water resources shall first satisfy the needs of the urban and rural inhabitants in their domestic use of water and give overall consideration to the agricultural, industrial and ecological need for water as well as to the needs of navigation.

In dry and semi-dry areas, the development and utilization of water resources shall take into full consideration the ecological environment's need for water.

Article 22

In case of inter-watershed diversion, an overall plan and a scientific justification must be conducted and consideration given to the demand for water in the watershed which supplies the water and in the watershed which receives it, while avoiding damages to the ecological environment.

Article 23

The local people's governments at various levels shall, in light of the actual situations of water resources of their respective regions, rationally organize the development and comprehensive utilization of water resources according to the principles of unified management and development of surface water and groundwater. It will open up the source while regulating the flow with priority given to regulation as well as disposition and reuse of the sewage.

The formulation of national economic and social development plans and overall urban plans, and the layout of major construction projects, shall be compatible with the conditions of the local water resources and the requirements of flood prevention, and scientific justification shall be undertaken. In areas where the water sources are insufficient, the scale of the urban area and the development of industrial, agricultural and service undertakings that use a large amount of water shall be restricted.

Article 24

In areas short of water resources, the state shall encourage the collection, development and utilization of rain and minor salt water and the utilization and desalination of seawater.

Article 25

The local people's governments at various levels shall improve the leadership over the work of irrigation, draining saturated fields, and water and soil conservation, thus promoting the development of agriculture production. In areas where brackishness or saturation is likely to take place, the governments shall take actions to control and lower the level of groundwater.

Where a rural collective economic organization or its members invest to construct water project facilities on the collective land owned by the organization or land contracted by a member, the water project facilities and the water stored in them shall be managed and rationally used according to the principle that "the party that invests in and constructs the facilities shall be the one to manage and benefit from such facilities."

The construction of a water reservoir by a rural collective economic organization shall be subject to the approval of the department of water administration of the local peoples' government at or above the county level.

Article 26

The state shall encourage the development and utilization of hydraulic power potential. On rivers with hydraulic power potential, multipurpose cascade development shall be effected in a planned way.

In the development of hydropower stations, the ecological environment shall be protected and the needs for flood control, water supply, irrigation, navigation, bamboo and log rafting, fishery, etc. shall be taken into account.

Article 27

The state shall encourage the development of water transport resources. When permanent dams and sluice-gates are built on rivers which are migrating channels for aquatic creatures, or are navigable or suitable for bamboo and log rafting, the construction entity must simultaneously build facilities for the passage of fish and ships and for bamboo and log rafting or, after approval by a department authorized by the State Council, take other remedial measures. The construction entity must also make adequate arrangements for the protection of aquatic creatures, navigation, and bamboo and log rafting during the construction period and the initial water-filling period, and bear the expenses incurred thereby.

Where a non-navigable river or man-made waterway becomes navigable after a dam or sluice-gate is built, the construction entity shall simultaneously build facilities for the passage of ships or reserve sites for such facilities.

Article 28

No entity or individual shall, while channeling, storing, or discharging water, infringe upon public interests or the lawful rights and interests of other people.

Article 29

The state shall apply the policies of resettlement of inhabitants for development purposes to the resettlement of inhabitants in construction of water projects, and shall appropriately arrange the production and lives of the resettled inhabitants and protect their lawful rights and interests according to the principles of providing compensation and subsidy in the early stage and support in the latter stage.

The resettlement of inhabitants shall be conducted at the same pace as that of the project construction. The construction entity shall, according to the environment capacity of the area of resettlement and the principle of sustainable development, formulate a plan for inhabitant resettlement in accordance with local conditions, and the relevant local people's government shall organize the implementation of the plan after it has been approved according to the law. The expenses incurred in the resettlement of inhabitants shall be included in the investment plan for project construction.

Chapter IV Protection of Water Resources, Water Areas and Water Projects

Article 30

In the formulation of a plan for development and utilization of water resources, and in the management of water resources, the water administration department of the people's government at or above the county level, the watershed authorities, and other relevant departments shall attend to maintenance of the rational volume of flow of the rivers and the rational water level of the lakes, reservoirs, and groundwater as well as the maintenance of the natural purifying capacity of the water.

Article 31

The approved plan shall be observed in the development, utilization, preservation, and protection of water resources and the prevention and cure of water disasters. If anyone causes the decline of functions of the rivers and lakes, over-collection of groundwater, or subsidence of ground or water pollution in violation of the plan, he or she shall bear the responsibility for treatment.

Where mining or the construction of other underground projects results in a lowering of the groundwater level, the depletion of groundwater or the subsidence of the ground because of water drainage, the mining entity or the construction entity shall take remedial measures. Where losses are caused to the livelihood and production of entities or individuals, such losses shall be compensated.

Article 32

The water administration department under the State Council shall, in conjunction with the environmental protection department, the relevant departments under the State Council, and the people's governments of the relevant provinces, autonomous regions and municipalities directly under the Central Government, delimit the water functional regions of the important rivers and lakes determined by the state according to the comprehensive watershed plans, water resource protection plans and economic and social development requirements, and report to the State Council for approval. The water functional regions of other rivers and lakes running across provinces, autonomous regions and municipalities directly under the Central Government shall be delimited by the water administration departments, the environmental protection departments, and other relevant departments of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government where those rivers and lakes are located. The regions shall, after the relevant people's governments examine and give their opinions, be examined by the water administration department under the State Council jointly with the environmental protection department under the State Council. The opinions shall be submitted to the State Council or the departments authorized thereby for approval.

The water functional regions of the rivers and lakes other than those prescribed in the preceding paragraph shall be delimited by the water administration departments of the local people's governments at or above the county level jointly with the environmental protection departments and the relevant departments of the people's governments at the corresponding level. The examination results shall be submitted to the people's governments at the corresponding level or departments authorized thereby for approval, and to the water administration departments and environmental protection departments at the next higher level for record.

The people's government water administration departments at and above the county level, or the watershed authorities, shall, according to the water functional regions' requirements for water quality and the natural purifying capacity of the water, determine the pollutant-carrying capacity of those water areas, and present opinions to the departments of environmental protection on the limitation of total pollutants discharge for those water areas.

The people's governments water administration departments at and above the county level, or the watershed authorities, shall monitor the water quality of the water functional regions. Where they find the total discharge of major pollutants exceeds the limitation or the water quality of the water functional regions fails to meet the requirements of the functions of the water areas, they shall promptly report to the relevant people's governments for treatment as well as notifying the environmental protection departments.

Article 33

The state shall establish the system of protection of drinking water resources. The people's governments of the provinces, autonomous regions and municipalities directly under the Central Government shall set the drinking water resource conservation districts and take necessary measures to prevent the water sources from drying up or being polluted, thus guaranteeing the safety of drinking water for urban and rural residents.

Article 34

It is prohibited to set up outlets for discharging sewage into the drinking water resource conservation districts.

The establishment, modification or expansion of outlets for discharging sewage on rivers and lakes shall be subject to the consent of the water administration departments or watershed authorities with the jurisdiction, and the environmental protection departments shall be responsible for the examination and approval of the environmental impact reports of those construction projects.

Article 35

When any construction project occupies the water source for agricultural irrigation, the irrigation facilities, or drainage projects, or has adverse impact on the original water source for irrigation, the construction entity shall take the relevant remedial measures and shall compensate for the loss if there is any.

Article 36

In areas where groundwater has been over-collected, the local people's governments at or above the county level shall impose strict control on the collection of groundwater. In the areas where groundwater has been seriously over-collected, the prohibition districts or limitation of groundwater collection may be delimited upon the approval of the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government.

For collection of groundwater in coastal areas, scientific justifications shall be undertaken, and measures shall be taken to prevent ground subsidence and sea invasion.

Article 37

It is prohibited to abandon or pile in any river, lake, reservoir, or canal objects that block the passage of floodwater. Planting trees or growing crops of a long-stalk variety that may block the passage of floodwater is also prohibited.

It is prohibited, within the range of riverway administration, to construct any building or structure that blocks the passage of flood water or to conduct any activity that affects the river flow, impairs the safety of river banks and dikes, or hampers the passage of flood water.

Article 38

The construction of bridges, wharfs and other buildings and structures that block, cross, or border the river, and the laying of pipes or cables that cross the river within the range of riverway administration shall meet the standards for prevention of flood and other related technical requirements set by the state. The plans for a construction project shall be submitted to the water administration departments for examination and approval in accordance with the relevant provisions of the law on flood prevention.

Where the building of any of the structures or facilities referred to in the preceding paragraph requires extension, modification, removal, or destruction of the original water structures or facilities, the entity constructing the new project shall bear the expenses for extension or modification and the expenses for the compensation of losses, unless the original structures or facilities were built in violation of the law.

Article 39

The state shall apply a license system for sand quarrying. The sand quarrying license implementation measures in the riverway shall be provided by the state.

Where any sand quarrying within the range of riverway administration affects the river flow or endangers the safety of dikes, the people's government water administration department at the county level or above shall delimit the prohibition districts and prescribe the prohibition period, which shall be publicly announced.

Article 40

It shall be prohibited to reclaim parts of a lake for use as farmland. Those already reclaimed shall be restored to the lake according to the state-prescribed flood prevention standards.

It shall be prohibited to reclaim parts of a riverway for use as farmland. Where the reclaiming is indeed necessary, it shall be scientifically justified. Reclamation shall, with the consent of the water administration department of the people's government of the province, autonomous region or municipality directly under the Central Government or the water administration department under the State Council, be submitted to the people's government at the corresponding level for approval.

Article 41

Entities and individuals shall bear the obligation of protecting water projects, and may not seize or destroy project facilities such as dikes, bank revetments, flood prevention facilities, hydrologic monitoring facilities, or hydrogeologic monitoring facilities.

Article 42

The local people's governments at and above the county level shall take measures to guarantee the safety of the water projects within their respective administrative areas, especially the dams and dikes, and to eliminate dangerous conditions within the prescribed period. The departments of water administration shall strengthen the supervision and administration of the safety of water projects.

Article 43

The state shall protect water projects. For the water projects owned by the state, the scope of project administration and protection shall be delimited according to the provisions of the State Council.

For water projects managed by the water administration department under the State Council or the watershed authorities, the scope of project administration and protection shall be delimited by the water administration department or the watershed authorities through consultation with the relevant people's governments of the provinces, autonomous regions, and municipalities directly under the Central Government.

For water projects other than those prescribed in the preceding paragraph, the scope of project protection and the duties of protection shall be delimited according to the provisions of the people's governments of provinces, autonomous regions, and municipalities directly under the Central Government.

Within the scope of water project protection, it shall be prohibited to conduct activities, such as blasting, sinking a well, rock quarrying or earth collection, that affect the function or endanger the safety of water projects.

Chapter V Allocation and Economic Use of Water Resources

Article 44

The development planning departments and the water administration department under the State Council shall be in charge of the macro-allocation of the water resources of the nation. The middle- and long-term plans for the supply and demand of water for the country and for regions covering different provinces, autonomous regions, and municipalities directly under the Central Government shall be formulated jointly by the State Council water administration department and other relevant State Council departments, and be submitted to the development planning State Council department for approval before execution. Local middle- and long-term plans for the supply and demand of water will be based on the middle- and long-term plan for the supply and demand of water made by the water administration department of the people's government at the next higher level and the actual local conditions. It will be formulated by the water administration department jointly with the other relevant departments of the local people's government at or above the county level, and shall be submitted to the development planning department of the people's government at the corresponding level for approval before execution.

The middle-and long-term plan for the supply and demand of water shall be formulated on the basis of the present water supply and demand situation, the plan for national economic and social development, the watershed plan, and the regional plan, according to the principles of coordination of the supply and demand of water resources, comprehensive balance, protection of the ecology, strict economic use, and rational opening of resources.

Article 45

For the regulation and storage of the runoff and the water allocation, the plans for water allocation shall be formulated on a watershed basis in accordance with the watershed plan and the middle-and long-term plan for the supply and demand of water.

A water allocation plan covering different provinces, autonomous regions and municipalities directly under the Central Government or a water diversion sketch under urgent drought conditions shall be formulated by the watershed authorities through consultation with the relevant people's governments of the provinces, autonomous regions and municipalities directly under the Central Government and be submitted to the State Council or the department authorized thereby for approval before execution. Other water allocation plans covering different administration areas and water diversion sketches under urgent drought conditions shall be formulated by the water administration department at the joint next higher level through consultation with the relevant local people's governments, then to be submitted to the people's governments at the corresponding level for approval before execution.

The relevant local people's governments must execute the approved plans for water allocation and water diversion sketches.

The construction of water resource development or utilization projects on the border rivers between different administration areas shall be in conformity with the approved water allocation plans, and shall be submitted by the relevant local people's governments at or above the county level to the water administration department of the people's government at their joint next higher level or the relevant watershed authorities for approval.

Article 46

The water administration departments of the local people's governments at or above the county level or the watershed authorities shall, according to the approved water allocation plans and the annual forecast of the amount of incoming water, formulate the annual water allocation and diversion plans and implement the unified water diversion, with which the relevant people's governments must comply.

The annual water allocation plans for important rivers and lakes as determined by the state shall be included in the annual national state economic and social development plan.

Article 47

The state shall apply a system that combines the control of total amount and that is managed on a quota basis.

The relevant industrial departments of the provinces, autonomous regions and municipalities directly under the Central Government shall set the quota for industry water use within their respective administrative areas and submit the quota to the water administration and quality supervision and inspection departments at the corresponding level for examination and approval. The approved quota shall be promulgated by the people's governments of the provinces, autonomous regions and municipalities directly under the Central Government and be submitted to the water administration and quality supervision and inspection departments under the State Council for record.

The development planning department of the local people's government at or above the county level shall, jointly with the water administration department at the corresponding level, formulate the annual plan for water use on the basis of the water available for their respective administration areas as determined by the quota for water use, the economic and technical conditions, and the plans for allocation of water. The plan shall control the total amount of the water used annually within their respective administrative areas.

Article 48

The entities and individuals that collect water resources directly from rivers, lakes, or underground shall, in accordance with the provisions of the water collection license system and the system of paid use of state water resources, apply to the water administration departments or watershed authorities for a water collection license, pay the water resource fees and thus obtain the right to collect water. However, collection of a small amount of water for household use, raising livestock in pens, etc. shall be excepted.

The State Council shall provide the specific measures for implementation of the water collection license system and the levying of water resource fees.

Article 49

The water used shall be measured, and the water shall be used according to the approved plans.

The measurement charging and progressive payment systems for the part in excess of quota shall be adopted for water use.

Article 50

The people's governments at various levels shall promote the water-saving irrigation mode and water-saving technology, and shall take necessary measures against leakage in water storage projects and agricultural transmission to enhance the efficiency of agricultural water use.

Article 51

Advanced technology, techniques, and equipment shall be adopted in industrial water use to increase the water circulation and enhance the reusability of water.

The state shall gradually eliminate the backward techniques, equipments and products that consume a large amount of water, and a specific list shall be formulated and promulgated by the general economic administration department under the State Council jointly with the water administration and other relevant departments under the State Council. The producers, sellers, or users in production and operation shall, within a specific time limit, stop the production, sale and use of the techniques, equipment and products that have been included in the list.

Article 52

The people's government of urban areas shall take effective measures in light of the local conditions to promote water-saving household water appliances, to reduce the leakage and loss in urban water supply pipes and to improve the efficiency of daily water use. It shall strengthen the concentrated disposition of urban sewage to encourage the use of recycling water and to enhance the utilization of recycling sewage.

Article 53

Any project of new construction, expansion or modification shall have the plans for water-saving measures and shall be accompanied by the construction of water-saving facilities. The water-saving facilities shall be designed, constructed and put into use at the same time as that of the principal project.

The water supply enterprises and the entities with self-constructed water supply facilities shall strengthen the maintenance and management of water supply facilities and reduce the leakage and loss of water.

Article 54

The people's governments at various levels shall take active measures to improve the conditions of drinking water for urban and rural residents.

Article 55

Those using the water supplied by water projects shall pay water fees to the water supply entities according to the provisions of the state. The water price shall be fixed according to the principles of compensation for cost, reasonable profits, high quality and favorable price, and fair burden. The specific measures shall be formulated by the price departments of the people's governments at or above the provincial level jointly with the water administration department at the corresponding level, or with other departments in charge of water supply according to their respective powers.

Chapter VI Settlement of Disputes over Water and Supervision and Inspection of Law Enforcement

Article 56

Any dispute concerning water arising between different administrative areas shall be handled through consultation. Where the consultation fails, the dispute shall be ruled on by the people's government at the next higher level, and the parties concerned must execute the ruling. Pending a settlement of the dispute, no party may construct any water project to drain, block, collect, or dam (store) water within a certain area on either side of the common boundary of the administrative areas, and no party may unilaterally alter the existing water regime, unless an agreement is reached between the parties concerned or an approval is granted by the people's government at the next higher level.

Article 57

Any dispute concerning water between units, between individuals or between units and individuals shall be resolved through consultation. Where a party is unwilling to have the dispute resolved through consultation, or the consultation fails, he may request the people's government at or above the county level or the competent department authorized by such a government to mediate the dispute, or may directly institute civil proceedings in the people's court. Where the mediation by the government or department fails, the parties may institute civil proceedings in the people's court.

Pending a settlement of the dispute, no party may alter the existing water regime unilaterally.

Article 58

When handling any dispute concerning water, the people's government at or above the county level, or the competent department authorized by such a government, shall have the power to take temporary measures with which the parties must comply.

Article 59

The water administration departments of the people's governments at and above the county level and the watershed authorities shall strengthen the supervision and administration of the acts violating this Law and punish such acts according to law.

The functionaries of water supervision and inspection shall be devoted to their duties and enforce the law impartially.

Article 60

The water administration departments of the people's governments at and above the county level and the watershed authorities, as well as the functionaries of water supervision and inspection, shall have the right to take the following measures when performing the duties of supervision and inspection prescribed by this Law:

1)

To demand the entity under inspection to provide the relevant documents, licenses and materials;

2)

To demand the entity under inspection to make explanations with respect to the issues related to the enforcement of this Law;

3)

To enter the production sites of the entities under inspection to make investigation;

4)

To order the entity under inspection to stop the acts that violate this Law and to perform the legal obligations.

Article 61

The relevant entities or individuals shall cooperate with the functionaries of water supervision and inspection, and may not hinder the functionaries in the performance of their duties according to law.

Article 62

The functionary of water supervision and inspection shall, when performing his duties of supervision and inspection, show his certificates of law enforcement to the entities or individuals under inspection.

Article 63

If the people's government at or above the county level or the water administration department at the next higher level finds the department of water administration at the corresponding level or at the next lower level has violated the law or neglected the duties in the supervision and inspection, the wrongful department shall be ordered to correct its acts within a specific time limit.

Chapter VII Legal Responsibilities

Article 64

If any water administration department, or other relevant department, or the water project administration entity and the working staff thereof take advantage of their authorities to accept others' money and property or other benefits, or neglect their duties to issue licenses or sign opinions of approval to the entities or individuals that do not meet the legal conditions, or have not allocated the water according to the plans for water allocation, have not collected water resource fees according to the relevant provisions of the state, have not performed their supervision duties, or have not punished the violations of the law, which acts result in serious consequences or constitute crimes, any responsible personnel shall be investigated for criminal charges according to the relevant provisions of the Criminal Law. Where the offense is not serious for criminal punishment, administrative sanctions shall be given according to law.

Article 65

Whoever constructs any building or structure that blocks the passage of flood water within the scope of riverway administration, or engages in any activity that affects the river flow, endangers the safety of banks and dikes, or any other activity that blocks the passage of flood water in a riverway, shall be ordered by the water administration department of the people's government at or above the county level or the watershed authorities, according to their powers, to stop the illegal act, to demolish the illegal building or structure, and to restore the site to its original state. If the offender fails to demolish the building and restore the site to its original state within the specific time limit, demolishment shall be enforced with the law-breaking entity or individual bearing the expenses incurred thereby, and a fine of at least 10,000 yuan but no more than 100,000 yuan shall be imposed concurrently.

Whoever, without the consent of the department of water administration or watershed authorities, constructs any water project, bridge, wharf, or other building or structure that dams, crosses or borders a river, or lays pipes or cables that cross a river shall be, in absence of corresponding provisions in the Law on Prevention of Floods, ordered by the water administration department of the people's government at or above the county level or the watershed authorities to stop the illegal acts and to process the relevant paperwork within a specific time limit. If the paperwork has not been made up or no approval has been obtained within the time limit, the illegal building or structure shall be demolished within a specific time limit.

If the building or structure has not been demolished within the time limit, demolishment shall be enforced with the law-breaking entity or individual bearing the expenses incurred thereby, and a fine of at least 10,000 yuan but no more than 100,000 yuan shall be imposed concurrently.

Though the consent of the department of water administration or the watershed authorities may have been obtained, whoever fails to construct the projects listed in the preceding paragraph according to the requirements shall be ordered by the department of water administration of the people's government at or above the county level or the watershed authorities, according to their powers, to correct its acts within a specific time limit, and be subject to a fine of at least 10,000 yuan but no more than 100,000 yuan regarding the gravity of the circumstances.

Article 66

Whosoever, in violation of this Law commits any of the following acts, shall be ordered, in absence of corresponding provisions in the Law on Prevention of Floods, by the water administration department of the relevant local people's government at or above the county level or the watershed authorities to stop his illegal act and clear away the obstacles or take other remedial measures within the specified time limit, and may be subject to a fine of at least 10,000 yuan but no more than 100,000 yuan;

1)

Abandoning or piling objects that obstruct the passage of flood, or planting trees and growing crops of a long-stalk variety which obstruct the passage of flood in any river, lake, reservoir or canal;

2)

Reclaiming parts of any lake for use as farmland or reclaiming parts of any river channel for use as farmland without approval.

Article 67

Whosoever sets up outlets for discharging sewage in any drinking water source conservation district shall be ordered by the people's government at or above the county level to demolish those outlets and to restore the site to its original state within a specified time limit. If the offender fails to do so within the time limit, demolishment shall be enforced to restore the original state, and a fine of at least 50,000 yuan but no more than 100,000 yuan shall be imposed concurrently.

Whosoever, without the examination and consent of the department of water administration or the watershed authorities, constructs new outlets for discharging sewage or modifies or expands the existing outlets, shall be ordered by the water administration department of the people's government at or above the county level or the watershed authorities to stop the illegal act and to restore the site to its original state within a specified time limit, and be subject to a fine of at least 50,000 yuan but no more than 100,000 yuan concurrently.

Article 68

Whosoever produces, sells, or uses in production and operation those backward techniques, equipment and products that consume a large amount of water that are expressly forbidden by the state shall be ordered by the general economic administration department of the people's government at or above the country level to stop the production, sale, or use, and be subject to a fine of at least 20,000 yuan but no more than 100,000 yuan.

Article 69

Whosoever commits any of the following acts shall be ordered by the water administration department of the people's government at or above the county level or the watershed authorities, according to their powers, to stop his illegal acts and to take remedial measures within the specific time limit, and be subject to a fine of at least 20,000 yuan but no more than 100,000 yuan. Where the circumstances are serious, the offender's water license shall be revoked.

1)

Collecting water without approval;

2)

Failing to collect water according to conditions prescribed by the approved water license.

Article 70

Whoever refuses to pay, delays in, or defaults on the payment of water resource fees shall be ordered by the water administration department of the people's government at or above the county level or the watershed authorities, according to their powers, to make the payment within a specific time limit. If no payment is made within the time limit, an overdue fine of 2% of the defaulted part per day from the day on which the payment is defaulted shall be imposed, and a fine of at least 1 time but no more than 5 times of the water resource fee payable shall be repaid.

Article 71

Whosoever, without approval, puts into use the water conservation facilities of construction projects that have not been finished or that do not meet the requirements prescribed by the state, shall be ordered by the water administration department of the people's government at or above the county level or the watershed authorities, according to their authority, to stop the use and correct the act, and he shall be subject to a fine of at least 50,000 yuan but no more than 100,000 yuan.

Article 72

Whosoever commits any of the following acts and constitutes a crime shall be prosecuted for criminal responsibilities according to the relevant provisions of the criminal law. Where the offense is not grave enough for criminal punishment and there are no corresponding provisions in the Law on Prevention of Floods, the offender shall be ordered by the water administration department of the people's government at or above the county level or the watershed authorities, according to their power, to stop the illegal act and to take remedial measures. He will also be subject to a fine of at least 10,000 yuan but no more than 50,000 yuan. Those violating the regulations on public security management shall be given administrative punishment concerning public security by the public security organs. Those causing losses to others shall be liable for the compensation. The aforementioned acts are:

1)

Seizing or damaging any water project or related facility such as dikes or bank revetments, or damaging any facility for flood prevention, hydrologic monitoring, or hydrogeologic monitoring;

2)

Carrying out, within the protection zone for a water project, any act of blasting, sinking a well, quarrying rock, or collecting earth, that affects the function of the water project and endangers the safety of the project.

Article 73

Whosoever seizes, steals, or forcibly seizes the supplies for flood prevention or materials and equipment for flood prevention, drainage of waterlogging, farmland irrigation, hydrologic monitoring and measurement, or for the building of other water projects, or whosoever embezzles or misappropriates state funds and materials that were intended for the relief of disasters, for use in flood emergencies, for flood prevention or for resettlement of inhabitants and compensation, or for other water projects, shall be prosecuted for criminal responsibility in accordance with the Criminal Law.

Article 74

Whosoever, in case of a dispute concerning water and the handling procedures, instigates trouble, fights in gangs, forcibly seizes or damages public or private property, or illegally restricts the personal freedom of others and constitutes a crime, shall be prosecuted for criminal responsibilities in accordance with the relevant provisions of the Criminal Law. Where the offense is not grave enough for criminal punishment, the offender shall be given administrative punishment concerning public security by the public security organs.

Article 75

In case of any dispute arising between different administrative areas, if any of the following acts has been committed, the responsible personnel shall be subject to administrative sanctions:

1)

Refusing to execute the water allocation plan and the water diversion sketch;

2)

Refusing to comply with the unified diversion of water;

3)

Refusing to execute the ruling of the people's government at the next higher level;

4)

Pending the settlement of the dispute concerning water, unilaterally altering the existing water regime in violation of this Law before an agreement is reached by the parties concerned or the approval by the people's government at the next higher level.

Article 76

Whoever diverts, intercepts (stores), or drains water and thus damages the public interests or the legal rights and interests of others shall bear civil liabilities according to law.

Article 77

The administrative punishment for violation of the provisions of Article 39 of this Law on the license for sand quarrying in riverway shall be provided for by the State Council.

Chapter VIII Supplementary Provisions

Article 78

Where any international treaty or agreement relating to international or border rivers or lakes, concluded or acceded to by the People 's Republic of China, contains provisions differing from those in the laws of the People's Republic of China, the provisions of the international treaty or agreement shall apply, unless the provisions are ones on which the People's Republic of China has made reservations.

Article 79

The "water projects" as referred to in this Law shall refer to the various kinds of projects that develop, utilize, control, arrange, and protect water resources from the rivers, lakes and groundwater sources.

Article 80

The development, utilization, protection, and management of seawater shall follow the provisions of the relevant laws.

Article 81

The activities of flood prevention shall follow the provisions of the Law on Prevention of Floods.

The water pollution prevention shall follow the provisions of the Law on Prevention of Water Pollution.

Article 82

This Law shall come into force as of October 1, 2002.