| China’s water resources are scarce. Given its limited water resource, policies in China have been traditionally focused on meeting sectoral demands for water by increasing the supply rather than managing demand. However, effective water resource policies that focus on demand management and encourage efficient water use remain the main weakness of China’s water policy. Main potential for efficiency gain is the agricultural sector, which accounts for 65 percent of the nation’s total water withdrawals. Due to major inefficiencies in irrigation water systems only about 45 percent of water withdrawals for agriculture are actually used by farmers to irrigate their crops. In addition to inefficiencies, the equity of the agricultural water policies is... |
