Abstract
Well-defined water rights are a central element of a functional water rights market where limited water resources can be reallocated towards higher valued use. The examination of China’s water reforms reveals that the ill-defined water rights are one of the major constraints that need to be addressed to make the market mechanism work. This chapter explores how clear and secure tradable water rights can be defined in China’s context. Referring to international experiences (e.g. those in Australia and the US) in defining tradable water rights, the chapter elaborates on a number of essential attributes of water rights that affect their security and certainty. These include the origin, duration, predictability and priority of water rights, the level of government interference, transferability and divisibility. A framework of water rights arrangements for China’s South-to-North Water Diversion Project (SNWDP) is also proposed to prepare the world’s largest water transfer project to become the world’s largest water rights trading market.
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Notes
- 1.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 2003, Melbourne: Productivity Commission, 40.
- 2.
Michael McKenzie, “Water Rights in NSW: Properly Property?” Sydney Law Review 31 (2009): 445.
- 3.
Jonathan P. Deason et al., “Water Policy in the United States : a Perspective,” Water Policy 3 (2001):177.
- 4.
John R. Teerink and Masahiro Nakashima, Water Allocation, Rights and Pricing: Examples from Japan and the United States , World Bank Technical Paper, No. WTP 198, 1993, 16.
- 5.
Ibid.
- 6.
Ibid.
- 7.
Ibid. Also see Deason et al., “Water Policy in the United States ,” 177, and Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 40.
- 8.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 40–41.
- 9.
Ibid, 43.
- 10.
Teerink and Nakashima, Water Allocation, Rights and Pricing, 18.
- 11.
Deason, et al., “Water Policy in the United States ,” 177.
- 12.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 111.
- 13.
Ibid, 41.
- 14.
McKenzie, “Water Rights in NSW,” 45. Also see Deason et al., “Water Policy in the United States ,” 178.
- 15.
Australia National Water Commission (NWC), Water Markets in Australia: A Short History, 2011, Canberra: National Water Commission, 29.
- 16.
Sarah F. Bates et al., Searching out the Headwaters: Changes and Rediscovery in Western Water Policy, Washington, D.C., Island Press, 1993, 205.
- 17.
Ibid, 131.
- 18.
Ibid, 132–133. Also see Australian Productivity Commission, Water Rights Arrangements in Australia and Overseas, 42.
- 19.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 42.
Also see Teerink and Nakashima, Water Allocation, Rights and Pricing, 16–17.
- 20.
Bates et al., Searching out the Headwaters, 205.
- 21.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 42.
- 22.
Bates et al., Searching out the Headwaters, 136.
- 23.
Ibid.
- 24.
Ibid.
- 25.
Ibid, 147.
- 26.
Ibid, 142.
- 27.
Ibid, 148.
- 28.
Ibid, 157.
- 29.
Joseph L. Sax, The Constitution, Property rights and the Future of Water Law , Boulder, Colo: Natural Resources Law Center, Western Water Policy Project Discussion Series Paper No.2, 1990.
- 30.
Deason et al., “Water Policy in the United States ,” 177.
- 31.
Teerink and Nakashima, Water Allocation, Rights and Pricing, 21.
- 32.
Ibid, 22.
- 33.
Deason et al., “Water Policy in the United States ,” 179.
- 34.
Ibid, 179.
- 35.
Ibid.
- 36.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 49, 52, 118.
- 37.
McKenzie, “Water Rights in NSW,” 445–446.
- 38.
Ibid, 52. Also see Australia China Environment Development Program, Report on the Development of Water Rights and Trading in the Peoples’ Republic of China, Canberra, Department of Agriculture, Fisheries and Forestry of Australia, 2006, 195.
- 39.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 103.
- 40.
Teerink and Nakashima, Water Allocation, Rights and Pricing, 21.
- 41.
Bates et al., Searching out the Headwaters, 155.
- 42.
Ibid.
- 43.
McKenzie, “Water Rights in NSW,” 446.
- 44.
Australia China Environment Development Program, Report on the Development of Water Rights and Trading in the People’s Republic of China, 208.
- 45.
NWC, Water Markets in Australia , 51, 56.
- 46.
Mark Bartley et al., Trading in Water Rights: Towards a National Legal Framework, Sydney and Brisbane: Phillips Fox; Queensland University of Technology, 2004, 12.
- 47.
Ibid.
- 48.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 63.
- 49.
Ibid, 61.
- 50.
Ibid, 62.
- 51.
Robert Poirier and Doris Schartmueller, “Indigenous Water Rights in Australia ,” The Social Science Journal 49, no. 3 (2012), 318.
- 52.
Ibid.
- 53.
NWI clauses 25 (ix) explicitly recognises the interests of indigenous people. See Australian National Water Commission (NWC), Third Biennial Assessment of Progress in Implementation of the National Water Initiative, 2011, http://www.agriculture .gov.au/water/policy/nwi (accessed January 30, 2017).
- 54.
Ibid.
- 55.
Australia National Water Commission (NWC), Australia’s Water Blueprint: National Reform Assessment 2014, http://webarchive.nla.gov.au/gov/20160615062247/http://www.nwc.gov.au/publications/topic/assessments/australias-water-blueprint-national-reform-assessment-2014 (accessed May 18, 2017).
- 56.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 59.
- 57.
Ibid.
- 58.
Poirier and Schartmueller, “Indigenous Water Rights in Australia ”.
- 59.
Michael O’Donnell, “The National Water Initiative, Native Title Rights to Water and the Emergent Recognition of Indigenous Specific Commercial Rights to Water in Northern Australia ,” The Australasian Journal of Natural Resources Law and Policy 16, no. 1 (2013): 83–100.
- 60.
Jianyuan Cui, Studies on Quasi Property Rights, 2nd ed. (Beijing : Law Press, 2006), 299, 302.
- 61.
1982 Constitution of the People’s Republic of China (2004 Amendments), http://www.npc.gov.cn/englishnpc/Constitution/node_2825.htm (accessed May 21, 2017), art. 10. 2007 Property Law of the People’s Republic of China, http://www.npc.gov.cn/englishnpc/Law/2009-02/20/content_1471118.htm (accessed May 21, 2017), art. 47.
- 62.
2002 Water Law of the People’s Republic of China , http://www.npc.gov.cn/englishnpc/Law/2007-12/12/content_1383920.htm (accessed May 21, 2017), art. 3, art. 7.
- 63.
Ibid, art. 25.
- 64.
The state shall put into practice a permit system for abstracting water directly from groundwaters, rivers and lakes. However, it is not required to apply for a permit if water is abstracted for household or for livestock watering, or if a small amount of water is abstracted for other purposes.
- 65.
Articles 3 and 4 were provisions regarding exemptions from the application for water abstraction permits . 1993 Implementing Measures on the Water Abstraction Permits System (China State Council), http://www.chinawater.net.cn/law/W03.htm (accessed September 28, 2008).
- 66.
Ibid, art. 33.
- 67.
1994 Provisions on Application and Approval Procedures for Water Abstraction Permits (China Ministry of Water Resources), http://www.mwr.gov.cn/zcfg/19940609/13845.asp (accessed June 26, 2008), art. 23.
- 68.
Ibid.
- 69.
1996 Measures on Supervision and Administration of Water Abstraction Permits (China Ministry of Water Resources), http://www.hwcc.com.cn/newsdisplay/NewsDisplay.asp?id=46093 (accessed June 26, 2008), art. 24.
- 70.
In this sense, river basins refer to those inter-provincial river basins that may include provinces, autonomous regions, or municipalities directly under the State Council.
- 71.
Notices on the Implementation of the Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection (China Ministry of Water Resources), 2006, http://www.gdwater.gov.cn/cms/yewuzhuanji/szygl/ggtz/20060703104256.html (accessed September 28, 2008).
- 72.
Ibid.
- 73.
For further details about the transformation of water abstraction permits from administrative regulation to legal basis for water rights , refer to Sect. 5.3.3.1.
- 74.
Stephen Hodgson, Modern Water Rights: Theory and Practices (Rome: Food and Agriculture Organization of the United Nations, 2006), 62.
- 75.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 125.
- 76.
McKenzie, “Water Rights in NSW,” 454.
- 77.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 125.
- 78.
Ibid, 105.
- 79.
Australia House of Representatives Standing Committee on Agriculture, Fisheries and Forestry, Getting Water Right(s)-the Future of Rural Australia, 2004, Canberra: Commonwealth of Australia, 69–71.
- 80.
Ibid.
- 81.
NWC, Water Markets in Australia , 58.
- 82.
NWC, Australia ’s Water Blueprint, 25.
- 83.
Ibid, 28.
- 84.
Ibid.
- 85.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection (China State Council), http://www.gov.cn/zwgk/2006-03/06/content_220023.htm (accessed May 21, 2017), art. 25.
- 86.
2008 Measures on Administration of Water Abstraction Permits (China Ministry of Water Resources), http://www.gov.cn/flfg/2008-04/17/content_947055.htm (accessed May 21, 2017), art. 27.
- 87.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 99.
- 88.
Ibid.
- 89.
Ibid, 117.
- 90.
Australia National Water Commission (NWC), Australia Water Markets Report 2012–13, 2013, Canberra: National Water Commission, 19.
- 91.
NWC, Water Markets in Australia , 137.
- 92.
NWC, Australia Water Markets Report 2012–13, 19.
- 93.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 120. Also see David H. Getches, Water Law in a Nutshell, 3rd ed. (St. Paul, Minnesota: West Publishing Co., 1997).
- 94.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 117–121.
- 95.
Ibid.
- 96.
Ibid, 249.
- 97.
Bates et al., Searching out the Headwaters, 157.
- 98.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection,
art. 24, art. 40.
- 99.
Ibid, art. 42.
- 100.
Ibid, art. 39, art. 40.
- 101.
Ibid, art. 41.
- 102.
Ibid.
- 103.
For further information regarding the priority of water use, please refer to Sect. 5.3.3.3.
- 104.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 5.
- 105.
2004 Measures on Implementation of the Water Law of People’s Republic of China for Beijing Municipality (Standing Committee of Beijing Municipal People’s Congress), http://www.bjcg.gov.cn/lawsearch.bbscs?action=read&idStr=119 (accessed September 28, 2008), art. 13.
- 106.
2002 Regulation on Water Conservation for Tianjin Municipality (2005 Amendments) (Standing Committee of Tianjin Municipal People’s Congress), http://www.chneef.com/law/qyfg/200504/20050423054233.html (accessed September 28, 2008), art. 17.
- 107.
Insufficient metering and monitoring infrastructure is another contributing factor to this situation.
- 108.
2008 Measures on Administration of Water Abstraction Permits , art. 21.
- 109.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 21.
- 110.
Ibid.
- 111.
Ibid, art. 24.
- 112.
Cui, Studies on Quasi Property Rights, 318.
- 113.
Ibid, 308.
- 114.
Ibid, 316.
- 115.
2008 Measures on Administration of Water Abstraction Permits , art. 27.
- 116.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 106.
- 117.
NWC, Water Markets in Australia , 78.
- 118.
NWC, The National Water Initiative – Securing Australia ’s Water Future: 2011 Assessment, 2011, Canberra: National Water Commission, 2011, 127.
- 119.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 106.
- 120.
Ibid, 207.
- 121.
Ibid.
- 122.
Ibid.
- 123.
2007 Property Law of the People’s Republic of China , http://www.npc.gov.cn/englishnpc/Law/2009-02/20/content_1471118.htm (accessed May 21, 2017), art. 121.
- 124.
Article 42 in China 2007 Property Law states that, “For the needs of public interests, collective-owned lands, premises or other real estates owned by entities and individuals may be requisitioned in accordance with the statutory power and procedures. When requisitioning collective owned lands, the full amount of land compensation fees, relocation subsidies, compensations for the above-ground fixtures of the lands and seedlings, and other fees are payable in accordance with law. Social security fees must be arranged for the farmers with the land requisitioned, and their livelihood and lawful rights and interests must be guaranteed and protected. When requisitioning premises or other real estates owned by entities and individuals, it is required to compensate for demolishment and relocation in accordance with law and protect the lawful rights and interests of the owners of the requisitioned realties. When requisitioning the individual residential homes, it is required to guarantee the housing conditions of the owners of the requisitioned homes…” Article 44 states that, “For the needs of emergent dangers or disasters, it is allowed for one to use the realties or chattels owned by entities and individuals according to the statutory power and procedures. Such realties or chattels shall, after the emergent use, be returned to the owners. Corresponding compensation shall be payable for realties or chattels being used, damaged or lost because of the use”.
- 125.
2008 Measures on Administration of Water Abstraction Permits , art. 29.
- 126.
Debra Townsend and Odette Adams, “Water Rights and Trading in Australia ,” Australian Environmental Law Digest, September (39): 3.
- 127.
David J. Guy, “A Model Water Transfer Act for California: An Agricultural Perspective,” Hastings West-Northwest Journal of Environmental Law & Policy 14 (40): 722.
- 128.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 136.
- 129.
Australia Bureau of Agricultural and Resource Economics and Sciences (ABARES), Australian Water Markets Report 2014–15, 2016, Canberra: Department of Agriculture and Water Resources, 18.
- 130.
NWC, Australian Water Markets Report 2012–13, 9.
- 131.
Guy, “A Model Water Transfer Act for California,” 714–715.
- 132.
Carl J. Bauer, Siren Song: Chilean Water Law as a Model for International Reform (Washington & Great Britain: Resources for the Future, 2004), 89.
- 133.
NWC, Water Markets in Australia , 138.
- 134.
Ibid.
- 135.
Australia Bureau of Statistics, 2004–05 Water Access Entitlements, Allocations and Trading, http://www.abs.gov.au/ausstats/abs@.nsf/mf/4610.0.55.003 (accessed September 28, 2008), 7.
- 136.
NWC, Water Markets in Australia , 83.
- 137.
Ibid.
- 138.
Australia Productivity Commission, Water Rights Arrangements Australia and Overseas, 112.
- 139.
NWC, The National Water Initiative – Securing Australia ’s Water Future, 29. Also see NWC, Australian Water Markets Report 2012–13.
- 140.
NWC, Australian Water Markets Report 2012–13.
- 141.
Getches, Water Law in a Nutshell, 176–179.
- 142.
Scott S. Slater, “A Prescription for Fulfilling the Promise of a Robust Water Market,” Symposium on the 25th Anniversary of the Report of the Governor’s Commission to Review California Water Rights Law, McGeorge Law Review 36 (2005): 261.
- 143.
Guy, “A Model Water Transfer Act for California,” 716.
- 144.
The Model Act section 101, quoted from Ibid.
- 145.
The duration of no more than 5 years was according to Article 26 of the 1994 Implementing Rules on Water Abstraction Permits in the Yellow River Basin (YRCC). After the 2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection was released, however, the old permits with less than 5 year duration were required to convert into new ones with durations between 5 and 10 years in accordance with Article 25 of the new Regulation.
- 146.
China Ministry of Water Resources, Water Management Department, ed. The Report on Pilot Experiences of Establishing the Water Rights System Part 1: Materials of Water Rights Transfer in the Inner Mongolia Autonomous Region (Beijing : China Water Publishing Co., 2005), 102.
- 147.
For details about the water rights transfers in the Yellow River Basin , refer to Sect. 4.4.3.
- 148.
2016 Provisional Measures on Administration of Water Rights Trading (China Ministry of Water Resources), http://www.gov.cn/zhengce/2016-05/22/content_5075679.htm (accessed May 27, 2017), art. 16.
- 149.
The right, however, is still subject to the provisions pertaining to the duration of water rights , government review, and other governmental interference.
- 150.
For more details about the annual water abstraction plans, refer to Sect. 5.3.2.2.
- 151.
Cui, Studies on Quasi Property rights, 355.
- 152.
Ibid, 356.
- 153.
Ibid, 355–360.
- 154.
Data from the official website of the Henan Section of the South-to-North Project, http://www.hnnsbd.gov.cn/index/gaikuang.asp (accessed September 28, 2008).
- 155.
Data from the official website of the South-to-North Water Diversion Project, http://www.nsbd.gov.cn/ (accessed September 28, 2008).
- 156.
Ibid.
- 157.
Ibid.
- 158.
China Ministry of Water Resources, Development Research Centre, “An Introduction to Research on the Construction and Administration System of the South-to-North Project,” China Water Resources 1B, (2003): 72.
- 159.
Data from the official website of the Construction and Administration Bureau of South-to-North Water Diversion Middle Route Project, http://www.nsbd.cn/n524903/index.html (accessed August 27, 2008).
- 160.
Ibid.
- 161.
Data from the official website of the Water Source Corporation of the South-to-North Middle Route, http://www.zxsygs.com/html/gsgk/ (accessed August 27, 2008).
- 162.
Development Research Centre, “An Introduction to Research on the Construction and Administration System of the South-to-North Project,” 73.
- 163.
Ibid, 72.
- 164.
Data from the official website of the Han River Group of Water Conservancy and Hydroelectric Power, http://www.hjgrp.com/about_us/lsyg_yg.asp (accessed August 28, 2008).
- 165.
Development Research Centre, “An Introduction to Research on the Construction and Administration System of the South-to-North Project,” 73.
- 166.
2014 Regulation on Administration of Water Supply and Use for the South-to-North Diversion Project (China State Council), http://en.pkulaw.cn/display.aspx?cgid=219668&lib=law (accessed May 21, 2017), art. 14, art. 6.
- 167.
Liwei Zhang et al., “A Review of the Australian Experiences in the Water Quality Security and Administration of the Snowy Mountains Project,” South-to-North and Water Conservancy Technology 2, 2007, http://www.hwcc.com.cn/newsdisplay/newsdisplay.asp?Id=178716 (accessed September 28, 2008).
- 168.
Development Research Centre, “An Introduction to Research on the Construction and Administration System of the South-to-North Project,” 73.
- 169.
Ibid.
- 170.
Ibid.
- 171.
Data from the official website of the South-to-North Water Diversion Project, http://www.nsbd.gov.cn/zw/zqxx/jsgl/3/20061018/200501070025.htm (accessed August 28, 2008).
- 172.
Development Research Centre, “An Introduction to Research on the Construction and Administration System of the South-to-North Project,” 73.
- 173.
Ibid, 72.
- 174.
China Ministry of Water Resources et al., Water Entitlements and Trading Project, Phase 2 Final Report, 2007, https://www.environment.gov.au/system/files/pages/d460a425-1223-401a-a544-cd4ee5916fc7/files/wet-phase2-report-english.pdf (accessed May 20, 2017), 65.
- 175.
Ibid.
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Jiang, M. (2018). Designing Tradable Water Rights for China. In: Towards Tradable Water Rights. Global Issues in Water Policy, vol 18. Springer, Cham. https://doi.org/10.1007/978-3-319-67087-4_6
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DOI: https://doi.org/10.1007/978-3-319-67087-4_6
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