Types of Water Rights Systems in China: A Zoning Scheme Applied

Abstract

This article analyzes the appropriate types of water rights systems for different regions with varying water resource conditions in China. The most appropriate water rights systems for various zones were determined by comparing the value of influencing factors with corresponding thresholds in China’s second-class zones of water resources. It is shown that a riparian rights system under water withdrawals permission could be adopted in most regions of southern China. For most northern Chinese regions, the quantity proportional water rights systems should be adopted and further improved. In contrast to the implementation of a single quantity proportional water rights system, this paper innovatively proposes a zoning scheme for China’s water rights system. The appropriate type of water rights system can be identified according to the region’s specific water resource conditions. It can provide a scientific reference for the reform of water rights systems in China and other countries or regions.

1. Introduction

For many years, debates about reforming water rights centered on strategies of centralized control or decentralizing rights to communities or individuals. But what we usually perceive as a dichotomy of centralized rationality or devolution to the lowest level may be, under the surface, a multiplicity of institutional options available at various scales, for governing multiple dimensions of rights. One solution is the recognition of polycentric pathways [1]. There can be multiple opportunities for participation in problem-solving.

In this context, different actors (individuals, groups and the state) may have overlapping rights and responsibilities over water resources, forming what Schlager and Ostrom describe as a bundle of rights [2]. This implies rights of access and withdrawal (rights of use) as well as rights of management, exclusion and alienation (rights of decision). Schlager and Ostrom’s framework has been modified to better account for the relationships between social actors regarding direct and indirect benefits; in particular, use rights resulting from the provision of indirect benefits and authoritative rights specifying the scope of control rights can be explained [3]. Wang et al. pinpointed pluralism in water rights [4]. He argued that individual rights of end users, namely the right to use water and in some jurisdictions to trade it, are conditioned by collective property rights held by water-withdrawing groups and state ownership of water on behalf of the Chinese people. But polycentric governance should not be seen as an environmental governance panacea for managing rights to water.

China has a vast landmass of 9.6 million km², and water resource conditions vary widely among regions. From the south-eastern coast to the north-western hinterland, the average annual rainfall gradually decreases. On the south-east coast it is around 1600 mm, while in the arid north-west of China it is less than 50 mm [5]. The water resource conditions in northern and southern China are different, and so is the problem of water scarcity. The shortage of water resources in northern China is mainly caused by insufficient rainfall, i.e., the lack of water in springs. Although South China is rich in rainfall, it also has a serious problem of water scarcity due to severe water pollution [6]. In view of the differentiated conditions of water resources and problems of water shortage in China, the regional management of water resources is conducive to improving the utilization efficiency of water resources and ensuring the sustainable utilization of water resources.

According to Coase’s theory of institutional economics, institutions incur costs [7]. An optimal institution achieves its goals at the lowest possible cost [8]. Reforming water rights and initiating water marketing follow the same reasoning. For example, Wang et al. argued that market mechanisms are gradually introduced into China’s hierarchical water governance system for cost effectiveness [4]. He stresses that there are stronger reasons to introduce market mechanisms at the bottom of the hierarchical structure of water rights system because the decision-making entities at the lower level are highly heterogenous and thus costlier to manage administratively. As for implementing a quantity proportional water rights system in areas with abundant water supplies, that would increase the institutional cost of maintaining it. Against this background, there is a need to identify a more suitable type of water rights system for each region in light of the recent situations and the government’s plans for institutional reforms to make the water rights system more fit for the real water resource conditions of different regions.

Currently, three types of water rights systems have been developed under specific water resource conditions—the riparian rights system, priority water rights system and quantity proportion water rights system. The riparian rights system means that the owners of land along the banks of a river have water rights on condition that they do not interfere with the rights of older users to use the water. And the riparian rights system is still used by regions that now have abundant water resources, such as basins in England, France and the eastern United States. However, under the riparian rights system, land that is not adjacent to a river cannot acquire water rights. The riparian rights system is not applicable in areas where water resources are scarce. The priority water rights system originated from the practice of water resources development in the arid and water-scarce areas of the western United States in the mid-19th century and it is still the dominant water rights system in the basins there. Under this system, the problem of access to water in areas that do not adjoin rivers is solved and it creates a chronological order of water use. But it only applies to smaller river basins; effective management of water use sequencing can only be achieved in small watersheds. In order to resolve conflicts over water resources in river basins where water resources are scarce, the quantity proportion water rights system is adopted. Water resources are allocated on the basis of a combination of human and environmental needs or river basin agreements. It is still adopted by many countries or large basins, such as the Yellow River Basin, the Tarim River Basin in China [9], the Arkansas River Basin in the United States, the Murray–Darling Basin in Australia [3], the Nile River Basin in Africa, and so on. These basins are all experiencing water scarcity or serious water resource conflicts. This water rights system achieves an equitable allocation of water between areas within the basin. In general, different water rights systems have evolved under different water resource conditions in the basins.

A prior empirical comparative study of the three types of water rights systems—riparian water rights, priority water rights, and quantity proportion water rights—found that each type of water rights system has a different limitation threshold for precipitation, runoff modulus, per capita water resources, and water resources utilization ratio [10]. This study analyses the conditions of the application of three water rights systems based on thresholds of influencing factors. We extend this study one step further. We explore potential scenarios for the types of water rights systems in different regions of China, based on the conditions under which they apply. We then propose a zoning scheme for appropriate water rights systems. A more appropriate water rights system should be chosen for different water resource zones, as opposed to a uniform system of quantity proportion water rights throughout the country. Taking into account the actual situation of water resources in the region, an effective program for water use and management can be developed. Generally speaking, the regionalized management of water resources is conducive to improving the efficiency of the use of water resources and ensuring the sustainable use of water resources.

2. Methods

2.1. Study Area

2.1.1. Status of China’s Water Rights System

China is a water-scarce country. The per capita water resources are still less than 2100 m³, which is only one third of the world’s per capita water resources. China’s water resources are unevenly distributed geographically and do not match the pattern of economic development. With 19 percent of the country’s water resources, the northern region supports 64 percent of the country’s land area, 60 percent of its arable land and 46 percent of its population. The national average annual water deficit is about 50 billion m³. More than 70 percent of the country’s urban agglomerations, more than 90 percent of its energy bases and more than 60 percent of its main grain-producing areas are located in water-scarce areas. Most of these areas are already severely or critically overloaded with water resources. The water shortage situation in China is becoming increasingly severe. The evolution of its water resources situation is unfavorable [11].

China’s water rights system, as one of the main approaches to water resources management, has the following three characteristics. First, all water resources, including surface and groundwater, belong to the state on behalf of the Chinese people. Second, the surface water and groundwater are managed and allocated in an integrated manner. The total control of water use includes the total amount of water withdrawn from surface water and groundwater. Therefore, China’s water rights system is a unified management system for surface water and groundwater resources. Third, the water allocation process is governed by a hierarchical framework that consist of four tiers of decision-making entities: central decision-making entities; local decision-making entities; group decision-making entities; and terminal users (farmers). After taking ecological water requirements and economic viability into consideration, water resources for human use, represented by water use quantity, are apportioned level by level (central government–province–prefecture–county) [12]. Fourth, micro-level water rights are determined by the water withdrawal permission system. Accordingly, the water resources department must grant water withdrawals according to the Water Law of the People’s Republic of China (first promulgated in 1988 and revised in 2002).

In contrast to property rights, the allocated water use quota to an administrative region is a quasi-water right rather than an actual water right. In China, for example, the upper-level administrative region may redistribute the water use right and the owners of water use rights cannot determine the water use rights independently. The water resources amount distributed by the government is not strictly a private property right because it can be reallocated by the government according to the actual water resources situation. It is possible to think of administratively distributed quasi-water rights as a kind of quantity proportion water rights to distribute water supplies to users proportionally. The 1987 Water Resources Allocation System for the Yellow River Basin, which was adopted by the State Council of China in 1987, is an illustration of the quantity proportion water rights system [13]. This scheme allocated available water resources among nine provinces (autonomous regions) along the Yellow River and Hebei Province and Tianjin Municipality (outside the basin). The distributable surface water resources of the Yellow River are allocated after allowing for water required for sediment transport, ecology, and natural loss to surface evaporation and riverbed seepage. The actual water resources of each province allocated every year are modulated in proportion to the water resources of that year. Provinces further distribute their water share to lower prefecture-level administrative regions, counties, water supply companies, and irrigation districts [9,14]. This model of water resources allocation has been adopted by other basins, and it is still planned to spread to more basins, including basins in southern China where water resources are abundant. However, this type of water rights—quantity proportional water rights—offers no panacea for all regions with distinct characteristics.

2.1.2. Selection of Study Units

The spatial units used for analysis and zoning in this study refer to China’s water resources zoning which is used in water resources planning and management. The principle of water resources zoning is the combination of the division of river basins and administrative regions, while maintaining the unity and integrity of river basins and administrative regions. There are four levels of zoning, but only three classes—first-class zones, second-class zones, and third-class zones—are used for country-level planning and management.

The division of the first-class zones is based on the principle of maintaining the integrity of the great river basins in China and it also includes the independent small basins which are close to these great river basins [15]. China is divided into 10 first-class zones: Songhua River, Liaohe, Haihe, Yellow River, Huaihe, Yangtze River, Southeastern rivers, Pearl River, Southwest rivers, and Northwest rivers, as shown in Figure 1 [16].

The division of second-class zones is dominated by the regional formation of surface water, while considering both the supply and demand system of water resources and the division of administrative regions. Based on this principle, the first-class zones are further divided into 80 second-class zones [17].

Following consultation with watershed agencies, provinces (autonomous regions, municipalities directly under the central government), and experts, the second-class zones were further divided into 214 third-class zones that reflect the consistency of water resource conditions within one zone or the integrity of sub-basins.

This study uses the second-class zones as the units of analysis because of the reasonably good statistical data availability. We also used the river basins as the unit of analysis (instead of the administrative regions) to match the research units identified in the study on the applicable conditions of water rights systems by Sun [10]. The first-class zones were too extensive and included sub-basins with diverse conditions. Due to the large number of sub-basins, it is difficult to obtain all the data in the third-class regions. Thus, the second-class zones of water resources are chosen as the research units.

2.2. Data Sources

Data on precipitation and water resources for each second-class zone were gathered from China’s water resource development and utilization report [18]. The 2011 Statistical Yearbook was used to estimate the population in the second-class zones. The runoff modulus and per capita water resources were calculated by dividing the total amount of water resources by land area and population. It should be noted that average annual precipitation, runoff modulus and per capita water resources are measures of the overall water resources situation in the second-class zones. These indicators measure the overall state of water resources, including surface water and groundwater. The ArcGIS program is used to carry out this data analysis.

2.3. Zoning of the Water Rights System

Regarding the water rights systems, there is a perception based on experience that riparian rights systems exist in water-rich areas, while priority water rights systems and quantity proportion water rights systems exist in arid areas. It is therefore reasonable to assume that there is some sort of match between various water rights system configurations and water resource conditions, such as the state of water resources development and utilization. In other words, there are some objective aspects of water resources that may affect the choice of types of water rights systems.

In a previous study, the correlated relationships between different types of water rights systems and objective influencing factors such as average annual precipitation, basin area, runoff modulus (the amount of runoff generated per unit watershed area per year), per capita water resources, water resources utilization rate (WUR) have been determined [10]. The average annual precipitation, runoff modulus, per capita water resources and water resources utilization rate are commonly used indicators of water resource abundance and scarcity. These indicators have been widely used in studies of water scarcity. For example, in the 2023 study by Zhao et al., these indicators were selected as components of an indicator layer to assess the extent of water scarcity in Chinese cities [19]. Among these indicators, the per capita water resources indicator is the earliest and most widely used indicator to assess the extent of water scarcity in a region [20,21]. By statistically analyzing the values of each influencing factor for each water rights system study unit, it was possible to determine the thresholds (maximum or lowest) for all influencing factors. Thereafter, the applicable conditions that applied to each sort of water rights systems were acquired [10].

For the three water rights systems, the riparian rights system has the strictest requirements for the conditions of water resources. Specifically, the required precipitation cannot be low, the per capita water resources cannot be low, and the degree of water resources development and utilization cannot be high. Therefore, the riparian rights system is appropriate for basins with a low WUR and an abundance of water resources. The average annual precipitation in these basins is greater than 700 mm, the runoff modulus is greater than 11.07 × 10⁴ m³/km², the per capita water resources are greater than 1122.4 m³/person, and the WUR is lower than 20%.

The zones suitable for the riparian rights system can be marked first according to the thresholds of average annual precipitation (700 mm), the runoff modulus (11.07 × 10⁴ m³/km²), per capita water resources (1122.4 m³/person), and the WUR (20%). The riparian rights system has historically been widespread in most regions of China, where water users along the river could divert water without restrictions on quantity. Therefore, riparian rights are considered to be applicable in these areas.

The remaining regions, which have lower average annual precipitation, runoff modulus, per capita water resources, and higher WUR than the corresponding threshold of the riparian rights system, are water-scarce areas. However, institutional development is path dependent. Looking at path dependency and its impact on institutional change, it is evident in the allocation of water rights [22]. According to this logic, China has no legacy of a priority water rights system. The priority water rights system is not considered an option for future water rights systems in China. Therefore, these regions are believed to be ideal for China’s current major water rights system—the quantity proportion water rights system.

3. Results

The objective influencing factors—the average annual precipitation, watershed area, runoff modulus, per capita water resources, and WUR of the second-class zones—have been collected, as shown in

Table 1. The objective influencing factors of the second-class zones.

Number	Names of the Second Class Zones	Average Annual Precipitation (mm)	Runoff Modulus (×104 m3/km2)	Basin Area (×104 km2)	Per capita Water Resources (m3/Person)	WUR (%)
1	Eerguna River	444.55	8.30	15.71	6450.40	9.00
2	Nen River	535.45	12.30	29.43	2311.70	26.00
3	The Second Songhua River	775.72	24.70	7.40	1248.00	31.00
4	Songhua River (Below Sanchakou)	663.40	21.70	18.64	1766.80	32.00
5	Heilongjiang Main River	618.60	19.30	11.69	9334.00	10.00
6	Wusuli River	716.18	17.00	6.06	2191.00	83.00
7	Suifen River	720.27	15.80	1.03	2800.50	15.00
8	Tumen River	774.71	23.10	2.27	3211.50	10.00
9	West Liao River	473.15	5.20	13.56	952.30	61.00
10	East Liao River	621.31	12.40	1.02	570.90	45.00
11	Liao Main River	753.71	14.50	4.85	732.00	43.00
12	Huitai River	853.01	25.30	2.74	446.00	71.00
13	Yalv River	905.44	48.40	3.25	3807.90	6.00
14	Rivers along the Yellow Sea and the Bohai Sea in Northeast China	667.56	19.80	6.14	685.80	32.00
15	Luan River and East Hebei coastal areas	551.26	11.60	5.48	573.60	77.00
16	North Hai Rivers	481.98	10.70	8.29	246.30	87.00
17	South Hai Rivers	564.11	12.00	14.89	221.80	101.00
18	Tuhaimajia River	674.90	11.90	3.23	218.50	77.00
19	Above Longyangxia	597.52	15.80	13.18	32,393.50	1.00
20	Longyangxia to Lanzhou	441.27	14.70	9.08	1446.50	24.00
21	Lanzhou to Hekou	305.76	2.50	16.30	232.40	90.00
22	Hekou to Longmen	461.36	5.50	11.07	682.50	15.00
23	Longmen to Sanmenxia	582.69	8.20	19.16	301.50	45.00
24	Sanmenxia to Huayuankou	712.32	14.40	4.16	443.90	35.00
25	Below Huayuankou	671.23	15.50	2.30	266.20	69.00
26	Inflow Area	340.61	2.70	4.35	1604.50	50.00
27	Up Reaches of Huai River	1123.26	39.60	3.04	994.00	26.00
28	Middle Reaches of Huai River	1022.38	29.10	12.98	475.70	51.00
29	Down Reaches of Huai River	1207.49	30.40	3.14	551.70	33.00
30	Yishusi River	821.89	26.70	7.74	399.40	65.00
31	Coastal Rivers along the Shandong Peninsula	736.53	19.20	6.03	322.40	57.00
32	Above Jinsha River Shigu	628.21	19.30	21.64	53,741.40	54.00
33	Below Jinsha River Shigu	963.01	44.40	25.68	5140.60	5.00
34	Mintuo River	996.85	65.40	16.29	2835.70	17.00
35	Jialing River	971.65	43.90	15.92	1725.00	13.00
36	Wu River	1207.74	62.80	8.80	2615.50	10.00
37	Yibin to Yichang	1140.05	63.50	9.98	2052.70	6.00
38	Rivers of Dongting Lake	1434.99	79.50	26.20	2788.50	15.00
39	Han River	1018.33	37.00	15.54	1664.90	29.00
40	Rivers of Panyang Lake	1667.47	94.60	16.20	3679.00	12.00
41	Yichang to Hukou	1255.95	62.30	9.54	1685.10	6.00
42	Main River below Hukou	1386.47	55.20	8.94	1069.50	16.00
43	Rivers of Tai Lake	1388.75	48.10	3.68	309.30	17.00
44	Qiantang River	1726.77	93.60	4.94	2584.10	19.00
45	Rivers in Eastern Zhejiang	1629.85	82.60	1.14	1090.90	24.00
46	Rivers in Southern Zhejiang	1796.53	102.90	3.35	2139.20	13.00
47	Rivers in Eastern Fujian	1740.46	111.90	1.62	4880.30	11.00
48	Min River	1728.34	96.60	6.03	5594.00	14.00
49	Minnan Rivers	1683.36	87.40	3.45	1463.60	26.00
50	Rivers of Taipengjinma	1988.29	87.40	3.64	1463.60	26.00
51	South and North Pan River	1146.69	47.00	8.41	2397.10	13.00
52	Hongliu River	1405.74	80.00	11.33	6080.90	9.00
53	Yu River	1644.59	54.40	7.81	3148.90	18.00
54	Xi River	1743.54	87.70	6.63	3553.80	10.00
55	Bei River	1823.38	108.60	4.67	5544.40	11.00
56	Dong River	1909.51	100.50	2.78	2662.30	18.00
57	Pearl River Delta	2065.06	107.50	2.79	683.00	14.00
58	Han River and Rivers in Eastern Guangdong	1812.44	100.90	4.57	1949.60	17.00
59	Coatal Rivers in Western Guangdong and Southern Guizhou	2004.27	103.10	5.59	2429.40	20.00
60	Rivers in Hainan island and the South China Sea islands	1803.60	90.00	3.40	3535.80	15.00
61	Hong River	1297.76	61.00	7.59	6352.80	5.00
62	Lancang River	1126.20	45.10	16.51	10,887.80	4.00
63	Nu River and Yiluowadi River	1055.36	64.50	15.30	18,420.90	2.00
64	Yaluzangbu River	951.40	68.60	24.53	107,648.00	1.00
65	Rivers in Southern Xizang	1336.88	127.80	14.46	665,487.00	5.00
66	Rivers in Western Xizang	676.84	5.60	5.67	92,805.60	30.00
67	Inland River in Inner Mongolian Plateau	311.45	1.60	31.08	1299.50	31.00
68	Inland River in Hexi Corridor	133.56	1.50	46.94	1538.00	88.00
69	Rivers in Qinghai Lake	289.73	6.50	4.72	19,817.40	8.00
70	Qaidam Basin	145.40	2.10	27.46	12,794.60	25.00
71	Rivers in Tuha Basin	97.74	1.90	13.36	2097.40	89.00
72	Rivers in Southern Aertai Mountain	215.40	13.00	8.18	17,600.60	51.00
73	Inland River in Central Asia and West Asia	269.78	23.70	7.78	6597.10	42.00
74	Guerbantonggute desert area	179.16	20.00	8.51	1700.00	41.00
75	Rivers in Northern Tian Mountain	234.13	7.70	14.89	1704.40	79.00
76	Headstream of Tarim River	159.10	7.50	43.05	3299.20	77.00
77	Rivers in Northern Kunlun Mountain	89.54	2.50	19.66	9193.90	30.00
78	Mainstream of Tarim River	85.13	0.10	3.16	151.10	10.00
79	Desert area in Tarim Basin	67.80	3.10	34.50	132.00	9.00
80	Inland Rivers in Qiangtang Plateau	297.71	3.70	73.22	113,680.00	11.00

Data sources: China’s water resource development and utilization report (2008); the Statistical Yearbook in 2011.

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According to the method proposed above, Figure 2 shows the proposed zoning for a suitable water rights system for China.

Table 2. The suitable water right system for each region.

Number	Names of the Second Class Zones	The Suitable Water Rights System
1	Eerguna River	Quantity proportion water rights
2	Nen River	Quantity proportion water rights
3	The second songhua river	Quantity proportion water rights
4	Songhua River (Below Sanchakou)	Quantity proportion water rights
5	Heilongjiang Main River	Quantity proportion water rights
6	Wusuli River	Quantity proportion water rights
7	Suifen River	Riparian rights
8	Tumen River	Riparian rights
9	West Liao River	Quantity proportion water rights
10	East Liao River	Quantity proportion water rights
11	Liao Main River	Quantity proportion water rights
12	Huitai River	Quantity proportion water rights
13	Yalv River	Riparian rights
14	Rivers along the Yellow Sea and the Bohai Sea in Northeast China	Quantity proportion water rights
15	Luan River and East Hebei coastal areas	Quantity proportion water rights
16	North Hai Rivers	Quantity proportion water rights
17	South Hai Rivers	Quantity proportion water rights
18	Tuhaimajia River	Quantity proportion water rights
19	Above Longyangxia	Quantity proportion water rights
20	Longyangxia to Lanzhou	Quantity proportion water rights
21	Lanzhou to Hekou	Quantity proportion water rights
22	Hekou to Longmen	Quantity proportion water rights
23	Longmen to Sanmenxia	Quantity proportion water rights
24	Sanmenxia to Huayuankou	Quantity proportion water rights
25	Below Huayuankou	Quantity proportion water rights
26	Inflow Area	Quantity proportion water rights
27	Up Reaches of Huai River	Quantity proportion water rights
28	Middle Reaches of Huai River	Quantity proportion water rights
29	Down Reaches of Huai River	Quantity proportion water rights
30	Yishusi River	Quantity proportion water rights
31	Coastal Rivers along the Shandong Peninsula	Quantity proportion water rights
32	Above Jinsha River Shigu	Quantity proportion water rights
33	Below Jinsha River Shigu	Riparian rights
34	Mintuo River	Riparian rights
35	Jialing River	Riparian rights
36	Wu River	Riparian rights
37	Yibin to Yichang	Riparian rights
38	Rivers of Dongting Lake	Riparian rights
39	Han River	Quantity proportion water rights
40	Rivers of Panyang Lake	Riparian rights
41	Yichang to Hukou	Riparian rights
42	Main River below Hukou	Quantity proportion water rights
43	Rivers of Tai Lake	Quantity proportion water rights
44	Qiantang River	Riparian rights
45	Rivers in Eastern Zhejiang	Quantity proportion water rights
46	Rivers in Southern Zhejiang	Riparian rights
47	Rivers in Eastern Fujian	Riparian rights
48	Min River	Riparian rights
49	Minnan Rivers	Quantity proportion water rights
50	Rivers of Taipengjinma	Quantity proportion water rights
51	South and North Pan River	Riparian rights
52	Hongliu River	Riparian rights
53	Yu River	Riparian rights
54	Xi River	Riparian rights
55	Bei River	Riparian rights
56	Dong River	Riparian rights
57	Pearl River Delta	Quantity proportion water rights
58	Han River and Rivers in Eastern Guangdong	Riparian rights
59	Coatal Rivers in Western Guangdong and Southern Guizhou	Riparian rights
60	Rivers in Hainan island and the South China Sea islands	Riparian rights
61	Hong River	Riparian rights
62	Lancang River	Riparian rights
63	Nu River and Yiluowadi River	Riparian rights
64	Yaluzangbu River	Riparian rights
65	Rivers in Southern Xizang	Riparian rights
66	Rivers in Western Xizang	Quantity proportion water rights
67	Inland River in Inner Mongolian Plateau	Quantity proportion water rights
68	Inland River in Hexi Corridor	Quantity proportion water rights
69	Rivers in Qinghai Lake	Quantity proportion water rights
70	Qaidam Basin	Quantity proportion water rights
71	Rivers in Tuha Basin	Quantity proportion water rights
72	Rivers in Southern Aertai Mountain	Quantity proportion water rights
73	Inland River in Central Asia and West Asia	Quantity proportion water rights
74	Guerbantonggute desert area	Quantity proportion water rights
75	Rivers in Northern Tian Mountain	Quantity proportion water rights
76	Headstream of Tarim River	Quantity proportion water rights
77	Rivers in Northern Kunlun Mountain	Quantity proportion water rights
78	Mainstream of Tarim River	Quantity proportion water rights
79	Desert area in Tarim Basin	Quantity proportion water rights
80	Inland Rivers in Qiangtang Plateau	Quantity proportion water rights

shows the details of the proposed water rights system in each second-class zone. In Figure 2, the blue zones on the map are the basins with abundant water resources that meet the riparian rights system’s required conditions. The red zones on the map are basins where water is scarce. In these basins, the quantity proportional water rights system should be continued.

The following regions may be appropriate for implementing the riparian rights system: southern China, including the Yangtze River, Southeast River, Pearl River (except the Pearl River Delta second-level zone), and Southeast River (except the Minnan River second-level zone) first-level zones. In addition, several northern zones, including the Suifen River and Tumen River second-level zones (within the Songhuajiang first-level zone) and Yalujiang River second-level zone (within the Liaohe first-level zone), are rich in water resources. They all fulfil the conditions for the application of the riparian rights system. In these zones, the average annual precipitation is above 700 mm, the runoff modulus is above 11.07×10⁴ m³/km², the per capita water resources level is above 1122.4 m³/person and the WUR is below 20%. However, the riparian rights system adopted here differs from the conventional riparian rights system. This approach does not strictly require that the user’s land be near the river. All regional users only have the right to use water if the entire region is adjacent to the river under the water withdrawal permission regulation.

The Pearl River Delta and the Minnan River second-level zones are two distinct regions in southern China that are experiencing a shortage of water resources. In the Pearl River Delta zone, the per capita water resource is 683 m³/person, which is lower than the corresponding threshold. In the Minnan River zone, the WUR is 26%, which is more than the threshold of 20%. The two zones are therefore inappropriate for the riparian rights system because they do not meet the necessary requirements.

The remaining red zones on the map, which represent the most northern regions and several southern regions of China, are basins with scarce water resources that fit the criteria for quantity proportional water rights systems. These regions include Songhuajiang River (except the Suifen River and Tumen River second-level zones), Liaohe (except the Yalujiang River second-level zone), Northwest River, Yellow River, Haihe first-level zones in northern regions, the Pearl River Delta second-level zone (within the Pearl River first-level zone), and the Minnan River second-level zone (within the Southeast River) in southern regions. They are basins with scarce water resources that fit the criteria for quantity proportional water rights systems. In these regions, the average annual precipitation is less than 700 mm, or the runoff modulus is less than 8.77 × 10⁴ m³/km², or the per-capita water resource is less than 10,179 m³/person, or the WUR exceeds 20%.

4. Discussion

4.1. The Potential Impact of Inter-Basin Water Diversion

For regions with water shortages in China, to ease the conflict between the supply and demand of water resources, inter-basin water diversion projects such as the South to North Water Diversion Project, the Project to divert the Yellow River water to Qingdao, and similar projects have been constructed or planned [23].

In principle, inter-basin water diversion projects cannot influence the original water use rights in regions where the water is diverted. However, in reality, the water resource conditions in both the regions from which water is diverted and those receiving the diversion may be changed by the project. The regions to which water is diverted in may be relieved of the water shortage, while the regions where the water is diverted out might face a water shortage. In both situations, the factors influencing the water rights system may change, and the original water rights system may no longer be suitable. Therefore, the original water rights system should be re-evaluated if it is still suitable after water diversion.

4.2. Possible Improvements to the Selection of Research Units and the Research Data

The research units used for analyzing the applicable conditions of three types of water rights systems contain different levels of basins. As to the riparian rights system, the research units may be the highest-level basins or sub-basin in which the water resources are managed uniformly based on the riparian principle. The research units of the quantity proportion water rights system may be one single basin, sub-basin, or basin groups in which the water resources are distributed according to the same water resources allocation plan. Therefore, the water rights management units in reality may be bigger or smaller than the second-class zones. If data are available, future research may use the units of basin-level entitlement and management of water rights as the units of analysis.

The water resources data used for the study are multi-year averages. These data are relatively stable over a period of time with no major changes. And the credibility of the results of the analyses can be ensured. If there are new water resources evaluation results in the future, there’s no denying that some of these data will change. In future studies, we will update the data based on the current research methodology. This will make the analyses more accurate.

4.3. Objective Conditions and Social Selection of a Water Rights System

This study aims to identify the objective constraints for adopting a water rights system. However, social and institutional evolution is essential for developing a water rights system. Undoubtedly, historical, socio-economical, and environmental characteristics are essential in selecting a water rights system. The current water rights system is a result of the long-term evolution of related institutions. However, some objective influencing factors and thresholds exist for selecting the applicable water rights system.

4.4. The Role of Water Pricing Systems

The water rights system contains a large number of water demand management components. It has thus become one of the main instruments for water use management. In addition to the water rights system, water prices, as a result of the economic realization of water rights, have become the main economic instrument influencing water resources management [24]. Water prices reflect the economic relationship between owners and users of water resources. Water prices are considered the most effective way to improve water allocation and water use efficiency [25]. While reforming the water rights system, the water pricing system should be continuously improved. By exploring a scientific and rational pricing mechanism, a reasonable price for water can be developed. Through the formulation of reasonable water prices, the price of water can truly reflect the true value of water resources. By combining the price of water with the right to water, the optimal allocation of water resources can be achieved together.

5. Conclusions

This study investigated potential scenarios of the zoning of different types of water rights in China based on the empirical analysis of the applicable conditions for each type of water rights system. Based on the specific conditions of water resources in different regions, the appropriate type of water rights system has been selected for carrying out more reasonable allocation and management of water resources. The potential suitable types of water rights systems in various zones with various water conditions are determined based on China’s second-class water resource zones.

The results of this study suggest that the current water rights system in China should be reformed in two ways. First, most of the southern regions and several northern zones are rich in water resources and meet the requirement for adopting a riparian rights system. Paying too much attention to water quantity management may increase institutional costs. This will lead to excessive waste of financial and human resources. The riparian rights system could be implemented under the conditions for water withdrawal approval. This type of water rights system meets the rational use of water resources and environmental protection requirements. Meanwhile, water resources management institutions should focus on water quality and drought management.

Second, in northern regions, where there is a water shortage, it is necessary to promote the reform of the quantity proportion water rights system. Under the current quantity proportion water rights system, water resources are distributed by the government. And the amount of allocated water resources can be changed by the government under specific conditions. Under the full property rights system, water rights must be protected and cannot be arbitrarily changed once users’ water rights have been defined. To achieve this goal, it may be necessary, on the one hand, to clearly define water rights and to allocate water rights as far as possible to water users at the micro level. It is necessary to define the indicators of water rights clearly for each province, county, town, irrigation district, and even the end user with high water consumption, such as the volume of water use and water consumption. On the other hand, quasi-water rights of water withdrawal regulations should be transformed into real water rights in the sense of property rights. This is conducive to better utilize the market mechanisms for reallocating water [26,27]. For example, once initial water rights have been established, they cannot be arbitrarily altered or withdrawn in order to protect the legitimate rights of water users.

It is worth noting that water pollution has become the most prominent issue of water security in China. In order to ensure that the amount of water provided for in a water right can be utilized, in addition to regulating the amount of water in a water right, the quality of the water in each water rights should also be regulated. For example, water quality standards for water sources for industrial, domestic and agricultural use are clearly defined. At the same time, the subject of responsibility for water quality needs to be clearly defined. Building a water rights system that combines water quality and quantity means specifying water quality standards for water sources and cross-sections while specifying regional water quantity. Only in this way can we effectively prevent water pollution and ensure the availability of water resources. Through the study of appropriate zoning of the water rights system, the consumption of water resources in water-scarce regions can be controlled strictly. At the same time, the water pollution can be prevented from becoming more serious. Thus, the reasonable allocation and effective using of water resources can be realized. It is the inevitable requirement of the sustainable utilization of water resources.