China’s Agricultural Water Policy Reforms - Water and Agriculture: Sustainability, Markets and Policies - page 123

2.4 Trialling market mechanisms to improve water use efficiency
During the implementation of several agricultural water use policy reforms, the
Chinese government trialled a market mechanism to improve water use efficiency and
promote efficient allocation of water resources, while increasing the agricultural water
use level.
In Zhangye, Gansu Province, after receiving water rights, the farmers can buy water
tickets from water departments. The tickets could be traded. This form of water rights
trading stimulated the development of an agricultural economic structure and irrigation
pattern reforms.
In the cross-sector water transfer in the Inner Mongolia Autonomous Region with the
characteristic of “investing in water saving and transferring water rights”, the water
market and water rights institution realised the optimal allocation of water resources, and
increased the efficiency of the use of water resources.
China is promoting and improving agricultural pricing mechanisms too. In the
consideration of affordability to farmers, and through the development of a scientific and
rational water pricing mechanism, the reforms are implementing field water tariff
structures and increasing farmers' water-saving awareness, while promoting changes in
the irrigation pattern to save water. At the same time, a public notice mechanism is
implemented to publicise water tariffs and water usage, in order to reduce the number of
collecting levels and abuses, and to reduce the burdens on farmers.