Administering Water Rights and Trading

Jiang, Min

doi:10.1007/978-3-319-67087-4_7

Min Jiang⁶

Part of the book series: Global Issues in Water Policy ((GLOB,volume 18))

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1 Citations

Abstract

From an economic perspective, water rights administration is an important variable of transaction costs for water rights trading. Globally in many countries in favour of market allocation mechanisms, water law reforms are attempting to remove the institutional barriers to their water trading markets. China faces a similar but more daunting challenge given that its water rights administration is to be established virtually from scratch. In other words, the current system lacks fundamental elements for water rights trading administration, and yet without it, a formal water market cannot occur. This chapter reviews international experiences from which China may learn to overcome the essential deficiencies in its existing legal system in water rights administration. Four major components regarding water rights administration highlighted in this chapter include centralisation of water rights administration, the water rights titling/registration system, provision of trading platforms, and market regulation and third-party protection. Reform recommendations will be made for China to address those critical components in water rights administration.

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Notes

1.
For more details about the CDWA , refer to Sect. 3.2.1.1.
2.
For more details, see Sect. 3.2.1.1.
3.
For more details, see Sect. 3.2.1.1.
4.
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. 3.
5.
Ibid. Also 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. 3.
6.
Ibid.
7.
Ibid, art.14.
8.
Ibid.
9.
2008 Measures on Administration of Water Abstraction Permits , art. 11. And 2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art.10.
10.
2008 Measures on Administration of Water Abstraction Permits , art.12.
11.
Ibid, art.16.
12.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art.12.
13.
Ibid.
14.
Ibid, art. 11; And 2008 Measures on Administration of Water Abstraction Permits , art.10.
15.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art.11.
16.
2008 Measures on Administration of Water Abstraction Permits , art. 8.
17.
Ibid, art. 1.
18.
Ibid, art. 10.
19.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 18.
20.
Ibid.
21.
Ibid.
22.
2008 Measures on Administration of Water Abstraction Permits , art. 19.
23.
Ibid, art. 9.
24.
Ibid, art. 20. And 2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 20.
25.
For further details, refer to Sect. 6.2.2.
26.
See Sect. 6.2.2.
27.
2008 Measures on Administration of Water Abstraction Permits , art. 26.
28.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 23.
29.
2003 Administrative Permission Law of the People’s Republic of China , http://www.npc.gov.cn/englishnpc/Law/2007-12/05/content_1381966.htm (accessed May 22, 2017), art. 40.
30.
2008 Measures on Administration of Water Abstraction Permits , art. 31.
31.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 46.
32.
2008 Measures on Administration of Water Abstraction Permits , art. 47.
33.
Ibid.
34.
Ibid.
35.
1999 Law of People’s Republic of China on Administrative Reconsideration, http://www.npc.gov.cn/englishnpc/Law/2007-12/11/content_1383562.htm (accessed May 22, 2017), art. 6.
36.
Ibid, art. 5. It should be noted that some decisions on administrative reconsiderations are terminal by law and therefore cannot be brought to a court.
37.
1989 Administrative Procedure Law of People’s Republic of China , http://www.npc.gov.cn/englishnpc/Law/2007-12/12/content_1383912.htm (accessed May 22, 2017), art. 2, art. 11.
38.
1993 Implementing Measures on the Water Abstraction Permits System (China State Council), http://www.chinawater.net.cn/law/W03.htm (accessed September 28, 2008), art. 20.
39.
1999 MWR Interim Rules on Administrative Reconsideration (China Ministry of Water Resources ), http://www.sxwater.gov.cn/oldweb/zcfg/SLXZCFFLFG/SLXZCFFLFG1019.htm (accessed September 28, 2008), art. 2.
40.
Ibid, art. 5.
41.
See Sect. 6.2.3.
42.
See Sect. 6.2.3.
43.
2008 Measures on Administration of Water Abstraction Permits , art. 28.
44.
For further information about the water rights transfers in the Yellow River Basin , refer to Sect. 4.4.3.
45.
2004 Trial Implementing Measure on Administration of Water Rights Transfer in the Yellow River Basin (Yellow River Conservancy Commission), http://www.yrcc.gov.cn/ziliao/zcfg/guizhang/200612/t20061222_9390.htm (accessed September 26, 2008), art. 3.
46.
Ibid, art. 3.
47.
Ibid, art. 7.
48.
Ibid, art. 14.
49.
Ibid, art. 6.
50.
Ibid, art. 8, art. 9.
51.
Ibid, art. 8.
52.
Ibid, art. 20.
53.
Ibid, art. 23.
54.
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. 4.
55.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 44. And 2008 Measures on Administration of Water Abstraction Permits, art. 30.
56.
2008 Measures on Administration of Water Abstraction Permits , art. 30.
57.
2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 51, art. 52, art. 53.
58.
Australian Productivity Commission, Water Rights Arrangements in Australia and Overseas, 2003, Melbourne: Productivity Commission, 75.
59.
David H. Getches, Water Law in a Nutshell, 3rd ed. (St. Paul, Minnesota: West Publishing Co., 1997), 154.
60.
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), 113.
61.
Ibid, 227.
62.
Ibid, 130, 164.
63.
Information from the official website of the Inner Mongolia Department of Water Resources, http://www.nmgslw.gov.cn/info/infoView.jsp?idcontent=9 (accessed July 14, 2008).
64.
Water Management Department. ed. The Report on Pilot Experiences of Establishing the Water Rights System Part 1, 202.
65.
2016 Provisional Measures on Administration of Water Rights Trading , art. 5.
66.
Ibid, art.14.
67.
For details, see Sect. 3.2.1.1.
68.
Anthony Scoot and Georgina Coustalin, “The Evolution of Water Rights,” Natural Resources Journal 35, no. 4 (1995): 835. In Roman law, freshets which flowed only in periods of high rainfall or thaw were considered privately owned by the persons whose land they crossed.
69.
Ibid.
70.
Ibid, 836.
71.
Ibid, 855.
72.
William Blackstone, Commentaries on the Laws of England Book 14 (1789), quoted from Ibid, 855.
73.
For further details about statute as an origin of water rights , see Sect. 6.1.4.
74.
Stephen Hodgson, Modern Water Rights: Theory and Practices (Rome: Food and Agriculture Organization of the United Nations, 2006), 37.
75.
Carl J. Bauer, Against the Current: Privatization, Water Markets, and the State in Chile (Boston & London: Kluwer Academic, 1998), 34.
76.
Ibid.
77.
Getches, Water Law in a Nutshell, 85.
78.
Ibid, 247.
79.
Ibid, 253.
80.
Ibid, 253–254.
81.
Australia Productivity Commission. Water Rights Arrangements in Australia and Overseas, 49.
82.
2000 Water Management Act of New South Wales, http://www.austlii.edu.au/au/legis/nsw/consol_act/wma2000166/ (accessed May 22, 2017), Section 392.
83.
Ibid, Section 393.
84.
Despite the abolition of common law riparian rights, basic landholder rights are vested by statute and allow water to be taken for stock and domestic purposes without approval. See Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 70.
85.
Getches, Water Law in a Nutshell, 85,139.
86.
Ibid, 82.
87.
Bauer, Against the Current, 35. In addition to the DGA, local civil courts in Chile take the responsibility for recognizing traditional water rights .
88.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 75.
89.
New South Wales Department of Primary Industries Water, Water Licensing, 2017, http://www.water.nsw.gov.au/water-licensing (accessed March 2, 2017). Based on the passage of the Water NSW Amendment (Staff Transfers) Bill through Parliament in 2016, a number of functions related to the delivery of water services in New South Wales will be transferred from DPI Water to WaterNSW from July 1, 2016.
90.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 184.
91.
Getches, Water Law in a Nutshell, 138, 141. Colorado Division of Water Resources, also known as the State Engineer’s Office, administers water rights . However, a system of water courts is in place to govern water law , to which stakeholders apply for a water right and oppose an application for a new water right. See Deserai A. Grow, “Policy Punctuations in Colorado Water Law: The Breakdown of a Monopoly,” Review of Policy Research 27, no. 2 (2010):155.
92.
California State Water Resources Control Board, Water Rights Applications: Permitting and Licensing Program, 2017, http://www.swrcb.ca.gov/waterrights/water_issues/programs/applications/ (accessed March 2, 2017).
93.
Brian E. Gray, “The Market and the Community: Lessons from California’s Drought Water Bank,” Hasting
West-Northwest Journal of environmental Law & Policy 14 (2008): 64.
94.
Grow, “Policy Punctuations in Colorado Water Law ,” 155. It is important to note that in Colorado, the right to withdraw designated ground water is handled by the Colorado Ground Water Commission via the Office of the State Engineer. There is also a well permit system in place, again handled by the Office of the State Engineer. See Colorado Division of Water Resources, Guide to Colorado Well Permits , Water Rights, and Water Administration, 2012, http://water.state.co.us/DWRIPub/Documents/wellpermitguide.pdf (accessed May 22, 2017).
95.
Getches, Water Law in a Nutshell, 152.
96.
Ibid, 153.
97.
The procedure is summarised from description of the Colorado system in Getches, Water Law in a Nutshell, 153–154.
98.
ACIL Tasman and Freehills, An Effective System of Defining Water Property Titles, Research Report to the Australian Government Department of Agriculture, Fisheries and Forestry, and Land & Water Australia , Canberra: Land & Water Australia, 2004, 21. Also see Michael Woolston, “Registration of Water Titles: Key Issues in Developing Systems to Underpin Market Development,” in The Evolution of Markets for Water: Theory and Practice in Australia, ed. Jeff Bennett (Cheltenham, UK; Northampton, MA, Edward Elgar, 2005), 80.
99.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 185, 204.
100.
Woolston, “Registration of Water Titles,” 86.
101.
P. Andrew Jones and Tom Cech, Colorado Water Law for Non-Lawyers (Boulder: University Press of Colorado, 2009), 227.
102.
Colorado Division of Water Resources, Guide to Colorado Well Permits , Water Rights, and Water Administration, 11.
103.
Ibid.
104.
Jones and Cech, Colorado Water Law for Non-Lawyers, 238.
105.
Ibid, 239.
106.
Ibid, 241.
107.
ACIL Tasman and Freehills, An Effective System of Defining Water Property Titles, 22. Woolston, “Registration of Water Titles,” 81.
108.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 103.
109.
ACIL Tasman and Freehills, An Effective System of Defining Water Property Titles, 22. Woolston, “Registration of Water Titles,” 81.
110.
Ibid, 41.
111.
Ibid, 43.
112.
Ibid, 44.
113.
Woolston, “Registration of Water Titles,” 88.
114.
ACIL Tasman and Freehills, An Effective System of Defining Water Property Titles, 44.
115.
For further details, see Sect. 6.2.4.
116.
Charles W. Howe, “Increasing Efficiency in Water Markets: Examples from the Western United States ,” in
Water Marketing – the Next Generation, ed. Terry L. Anderson and Peter J. Hill (Lanham, Boulder, New York,
London: Rowman & Littlefield Publishers, Inc., 1997), 86.
117.
Brent M. Haddad, Rivers of Gold, Designing Markets to Allocate Water in California (Washington, D.C.: Island Press, 2000), 51; Gray, “The Market and the Community,” 48.
118.
Howe, “Increasing Efficiency in Water Markets,” 87.
119.
Gray, “The Market and the Community,” 55.
120.
Ibid. Also Haddad, Rivers of Gold, 55.
121.
Gray, “The Market and the Community,” 56.
122.
Australia National Water Commission (NWC), Water Markets in Australia: A Short History, 2011, Canberra: National Water Commission, 11.
123.
Ibid, 68.
124.
Australia National Water Commission (NWC), Australia Water Markets Report 2012–13, 2013, Canberra: National Water Commission, 25.
125.
Australian Competition and Consumer Commission (ACCC), Water Market Intermediaries – Industry Developments and Practices, 2010, Canberra: Australian Competition and Consumer Commission, 12.
126.
Ibid.
127.
NWC, Australia Water Markets Report 2012–13, 23.
128.
Ibid.
129.
ACCC, Water Market Intermediaries, 12.
130.
NWC, Water Markets in Australia , 68.
131.
Ibid, 48.
132.
Ibid.
133.
Ibid, 53.
134.
Ibid, 6.
135.
Ibid, 60.
136.
Ibid, 50.
137.
NWC, Australia Water Markets Report 2012–13, 6.
138.
Ibid.
139.
NWC, Water Markets in Australia , 87.
140.
Ibid, 94.
141.
Rebecca Abeln, “Instream Flows, Recreation as Beneficial Use, and the Public Interest in Colorado Water Law ,” University of Denver Water Law Review 8 (2005): 522.
142.
Ibid, 524.
143.
Charlton H. Bonham, “Perspectives from the Field: A Review of Western Instream Flow Issues and
Recommendations for a New Water Future,” Environmental Law 36 (2006):1223.
144.
Mary Ann King, “Getting Our Feet Wet: An Introduction to Water Trusts,” the Harvard Environmental Law
Review 28 (2004): 505.
145.
Ibid, 506.
146.
Janet C. Neuman, “the Good, the Bad, and the Ugly: the First Ten Years of the Oregon Water Trust,” Nebraska Law Review 83 (2004): 436.
147.
NWC, Water Markets in Australia , 78.
148.
Ibid, 80.
149.
Ibid.
150.
Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES), Australian Water Markets Report 2014–15, 2016, Canberra: Department of Agriculture and Water Resources, 51.
151.
NWC, Australia Water Markets Report 2012–13, 6.
152.
ABARES, Australian Water Markets Report 2014–15, 2.
153.
Gray, “The Market and the Community,” 96.
154.
Australia Productivity Commission, Water Rights Arrangements in Australia and Overseas, 196.
155.
Ibid, 198.
156.
NWC, Water Markets in Australia , 61.
157.
Ibid, 63.
158.
Barton H. Thompson, “Institutional Perspectives on Water Policy and Markets,” California Law Review 81 (1993):703.
159.
Ibid. In California as an example, because the state does not have jurisdiction over most groundwater-related transfers, the protection of third parties by no injury laws do not fully extend to groundwater users. To correct this omission, rural counties have their own local ordinances to restrict groundwater exports. See generally Ellen Hanak and Caitlin Dyckman, “Counties Wresting Control: Local Responses to California’s Statewide Water Market,” University of Denver Water Law Review 6 (2003): 490–518.
160.
Megan Hennessy, “Colorado River Water Rights: Property Rights in Transition,” University of Chicago Law
Review 71 (2004):1670.
161.
Ibid.
162.
Ibid,1671.
163.
For example, see Caitlin S. Dyckman, “A Dynastic Disruption: The Use Efficiency and Conservation Legacy of the Governor’s Commission to Review California Water Rights Law Recommendations,” McGeorge Law Review 36 (2005):197.
164.
Ronald A. Kaiser, “Texas Water Marketing in the Next Millennium: A Conceptual and Legal Analysis,” Texas Tech Law Review 27 (1996):215.
165.
Ibid, 216.
166.
Ibid.
167.
Ibid, 217.
168.
Ibid, 218.
169.
Ibid.
170.
Generally see Joseph Sax, “The Public Trust Doctrine in Natural Resource Law: Effective Judicial Intervention,” Michigan Law Review 68 (1970): 475–566; Carol M. Rose, “A Review of Professor Joseph Sax’s Defense of the Environment through Academic Scholarship: Joseph Sax and the Idea of the Public Trust,” Ecology Law Quarterly 25 (1998): 351–362; Cynthia L. Koehler, “Water Rights and the Public Trust Doctrine: Resolution of the Mono Lake Controversy,” Ecology Law Quarterly 22 (1995): 541–589; George P. Smith and Michael W. Sweeney, “The Public Trust Doctrine and Natural Law: Emanations within A Penumbra,” Boston College Environmental Affairs Law Review 33, no.2 (2006): 307–343.
171.
Generally see Sax, “The Public Trust Doctrine in Natural Resource Law”; Rose, “A Review of Professor Joseph Sax’s Defense of the Environment through Academic Scholarship”.
172.
Gregory S. Weber, “Articulating the Public Trust: Text, Near-Text and Context,” Arizona State Law Journal 27 (1995):1160.
173.
Ibid,1162.
174.
Ibid,1171.
175.
Ibid,1173.
176.
Ibid,1172, 1178.
177.
Ibid,1229.
178.
Ibid,1248.
179.
34 provincial governments include 4 municipalities directly under the State Council, 5 autonomous regions, 22 mainland provinces, Hong Kong Special Administrative Region, Macao Special Administrative Region, and Taiwan Province. However, provincial governments in the book exclude Hong Kong, Macao, and Taiwan.
180.
Data from the official website of the Department of District Division and Place Naming, China Ministry of Civil Affairs, http://www.xzqh.org.cn/ONEWS_zq.asp?id=1150 (accessed August 28, 2008).
181.
John Bryan Starr, Understanding China (London: Prfile, 1998), 71.
182.
World Bank, East Asia Decentralizes: Making Local Government Work, Washington DC.: World Bank, 2005, 2.
183.
Information from the official website of Ministry of Environmental Protection of China , http://www.zhb.gov.cn/hjjc/hjzf/djt/200612/t20061229_99016.htm (accessed August 28, 2008).
184.
Bin Liu, “Institutional Design Considerations for Water Rights Development in China ,” in Water Rights Reform: Lessons for Institutional Design, ed. Bryan Randolph Bruns et al. (Washington, D.C.: International Food Policy Research Institute, 2005), 275–276.
185.
Starr, Understanding China , 71. Also see World Bank, East Asia Decentralizes, 11, 31.
186.
World Bank, East Asia Decentralizes, 11.
187.
Yongzheng Liu and James Alm, “‘Province-Managing-County’ Fiscal Reform, Land Expansion, and Urban Growth in China ,” Journal of Housing Economics 33 (2016): 82.
188.
China has a four-level framework of subnational governments, which includes provinces, prefectures, counties and townships. Township governments, however, tend to have few powers for the administrative permits and approvals on various social and economic activities. Instead, these administrative powers are often divided among provincial, prefecture and county governments.
189.
Liu and Alm, “Province-Managing-County’ Fiscal Reform,” 85.
190.
Ibid.
191.
Ibid.
192.
Ibid, 88.
193.
Starr, Understanding China , 72.
194.
Liu and Alm, “Province-Managing-County’ Fiscal Reform,” 83.
195.
2004 China State Council’s Notice Regarding the Reform of the Land Use Administration System below the Provincial Level, http://www.cas.ac.cn/html/Dir/2004/12/01/7810.htm (accessed September 29, 2008). The administration of overall land use plans of townships may be delegated to prefectural governments, but several major indicators in the plans are still subject to the assessment and approval of the provincial government.
196.
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. 9.
197.
Ibid, art.10, art. 16, and art. 18.
198.
Ibid, art. 17.
199.
Ibid, art. 21.
200.
2016 Provisional Measures on Administration of Water Rights Trading , art. 7.
201.
Ibid.
202.
Information from the official website of China Water Exchange, http://cwex.org.cn/html/en/ (accessed May 25, 2017).
203.
Information from the official website of China Water Exchange, http://cwex.org.cn/lising/ (accessed May 25, 2017).
204.
2016 China Water Exchange Water Rights Trading Rules (Trial), http://cwex.org.cn/2016/jygz_0621/45.html (accessed May 25, 2017).

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College of Business, Victoria University, Melbourne, VIC, Australia
Min Jiang

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Min Jiang
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Jiang, M. (2018). Administering Water Rights and Trading. In: Towards Tradable Water Rights. Global Issues in Water Policy, vol 18. Springer, Cham. https://doi.org/10.1007/978-3-319-67087-4_7

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DOI: https://doi.org/10.1007/978-3-319-67087-4_7
Published: 26 September 2017
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-67085-0
Online ISBN: 978-3-319-67087-4
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