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Initialising Tradable Water Rights

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Book cover Towards Tradable Water Rights

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

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Abstract

This chapter first clarifies the concept of water rights, which is used in various and confusing ways in China. Reflecting the changing philosophy of water use towards sustainability, it then investigates the three-step approach to water rights initialisation: the first step is water planning, which determines how much water can be allocated within a basin or a region as well as among multiple water use sectors. The second step of water quantity allocation distributes quotas among regions and sectors within the basin or the administrative region. It finally comes to the third step of water abstraction permits, which further defines usufruct water rights as the legal basis of tradable water rights. The current legal systems of water planning, quantity allocation, and abstraction permits are examined to understand their deficiencies that may undermine the development of tradable water rights, based on which implications for reform are articulated.

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Notes

  1. 1.

    Xisheng Huang, A Study on the Water Rights System (Beijing : Science Press, 2005), 68–70.

  2. 2.

    Jianyuan Cui, Studies on Quasi Property Rights, 2nd ed. (Beijing : Law Press, 2006), 255. Also see Jianyuan Cui, “Rational Analysis of the Legal Nature of Water Rights,” Journal of Zhengzhou University (Philosophy and Social Science Edition)37, no, 3 (2004): 18.

  3. 3.

    Huang, A Study on the Water Rights System, 71.

  4. 4.

    John Bouvier, A Law Dictionary, Adapted to the Constitution and Laws of the United States , 1856, http://legal-dictionary.thefreedictionary.com/usufruct (accessed May 7, 2017).

  5. 5.

    Cui, Studies on Quasi Property Rights, 21.

  6. 6.

    Ibid, 255; Also see Jianyuan Cui, Property Rights: Growth and Formation (Beijing : People’s University of China Press, 2004), 302.

  7. 7.

    Cui, Studies on Quasi Property Rights, 33.

  8. 8.

    Ibid, 38.

  9. 9.

    Ibid, 36.

  10. 10.

    Ibid, 63.

  11. 11.

    Stephen Hodgson, Modern Water Rights: Theory and Practices (Rome: Food and Agriculture Organization of

    the United Nations, 2006), 7.

  12. 12.

    Ibid.

  13. 13.

    Shucheng Wang, Resource-oriented Water Management: Towards Harmonious Coexistence between Man and Nature, 2nd ed. (Singapore: World Scientific Publishing; Beijing : WaterPower Press, 2006), 37.

  14. 14.

    One of the Five Emperors. These legendary rulers ruled ancient China between 2850 B.C. and 2205 B.C., the time preceding the Xia Dynasty.

  15. 15.

    Dante A. Caponera, National and International Water Law and Administration: Selected Writings (The Hague, London: Kluwer Law International, 2003), 41.

  16. 16.

    Wang, Resource-oriented Water Management, 3.

  17. 17.

    Ibid, 34.

  18. 18.

    Ibid, 37.

  19. 19.

    The 10th Five Year Plan Outline of China ’s National Economic and Social Development (2001–2005) (China State Council),

    http://www.people.com.cn/GB/shizheng/16/20010318/419582.html (accessed September 27, 2008), Chapter 1 and Chapter 14.

  20. 20.

    The 11th Five Year Plan of Water Resources Development of China (China National Development and Reform Commission, Ministry of Water Resources, and Ministry of Construction), 2007, http://www.ndrc.gov.cn/zcfb/zcfbtz/2007tongzhi/t20070607_140130.htm (accessed June 11, 2007), 9.

  21. 21.

    The 12th Five Year Plan for Water Resources Development of China (China National Development and Reform Commission, Ministry of Water Resources, and Ministry of Housing and Urban-Rural Development), 2012, www.sdpc.gov.cn/fzgggz/fzgh/.../P020160426377473589189.doc (accessed May 22, 2017),11.

  22. 22.

    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. 47.

  23. 23.

    Ibid.

  24. 24.

    China 2002 Water Law , chp. 2.

  25. 25.

    Ibid, art. 47.

  26. 26.

    Notice to Carry out the Formulation of the National Overall Plan of Water Resources (China Ministry of Water Resources and National Planning Commission), 2002,

    http://www.hwcc.com.cn/newsdisplay/newsdisplay.asp?id=80832 (accessed September 27, 2008).

  27. 27.

    The National Development and Reform Commission (NDRC) is the former National Planning Commission.

  28. 28.

    The Ministry of Housing and Urban-Rural Development (MOHURD) is the former Ministry of Construction.

  29. 29.

    The Ministry of Environmental Protection (MEP) is the former State Environmental Protection Administration.

  30. 30.

    Including Yangtze, Yellow, Huai, Hai, Songhua, Liao, Pearl, Taihu and south eastern rivers, south western rivers and north western rivers.

  31. 31.

    Advice on Issues Regarding the Formulation of the National Overall Plan of Water Resources (General Office of the National Planning Commission and General Office of the MWR), 2002, http://www.hwcc.com.cn/newsdisplay/newsdisplay.asp?Id=80937 (accessed September 27, 2008).

  32. 32.

    Ibid.

  33. 33.

    MWR and NPC, Notice to Carry out the Formulation of the National Overall Plan of Water Resources.

  34. 34.

    China 2010 National Water Resources Overall Plan (2010–2030) (China State Council), 2010, http://www.sdpc.gov.cn/fzgggz/fzgh/.../P020160426386340300637.doc (accessed May 7, 2017), Forward.

  35. 35.

    Ibid.

  36. 36.

    Ibid.

  37. 37.

    Ibid.

  38. 38.

    Ibid, 3.

  39. 39.

    Ibid.

  40. 40.

    Ibid.

  41. 41.

    For further information regarding water management based on river basins and administrative units, refer to Sects. 3.1 and 3.2.

  42. 42.

    China 2002 Water Law , art. 12.

  43. 43.

    1988 Water Law of the People’s Republic of China , http://english.mofcom.gov.cn/article/lawsdata/chineselaw/200211/20021100053796.shtml (accessed May 21, 2017), art. 11.

  44. 44.

    China 2002 Water Law , art. 14.

  45. 45.

    Ibid.

  46. 46.

    Ibid.

  47. 47.

    Ibid.

  48. 48.

    Advice on the Review of the Comprehensive River Basin Plans (China Ministry of Water Resources), 2007, http://202.123.110.5/zwgk/2007-06/20/content_654854.htm (accessed September 27, 2008).

  49. 49.

    Yong Jiao, the Review of the Comprehensive River Basin Plans Guided by the Scientific Concept of Development, Speech at the Work Meeting of the National Water Planning, 2007,

    http://www.mwr.gov.cn/ztpd/tszt/lyzhghxbzt/ldjh/200804011648557bc36b.aspx (accessed September 27, 2008).

  50. 50.

    China 2010 National Water Resources Overall Plan.

  51. 51.

    Ibid.

  52. 52.

    Ibid.

  53. 53.

    Ibid.

  54. 54.

    The seven river basins include: Yangtze River Basin, Liao River Basin, Yellow River Basin , Huai River Basin, Hai River Basin, Pearl River Basin, Songhua River Basin. In addition, Tai Lake Basin also reviewed its plan, which was approved by the State Council as well.

  55. 55.

    China 2002 Water Law , art. 19.

  56. 56.

    Jiao, the Review of the Comprehensive River Basin Plans.

  57. 57.

    China 2002 Water Law , art. 44.

  58. 58.

    Ibid.

  59. 59.

    Ibid, art. 45.

  60. 60.

    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), 182.

  61. 61.

    Ibid,184.

  62. 62.

    Ibid,181, 185. Also see Zhongjing Wang et al., “Characteristics of Water Rights System Development in the Huolinhe River Basin,” China Water Resources 21 (2006): 28.

  63. 63.

    Ibid.

  64. 64.

    Xinmin Xie et al., “Analysis on the Determination Method of Government-reserved Water Quantities for Initial Water rights Allocation in the Song-Liao Rivers Basin,” Journal of China Institute of Water Resources and Hydropower Research 4, no. 2 (2006):128.

  65. 65.

    Australia China Environment Development Program, Report on the Development of Water Rights and Trading in the Peoples Republic of China, 183.

  66. 66.

    The 11th Five Year Plan of Water Resources Development of China , 29.

  67. 67.

    2007 Interim Measures on Water Quantity Allocation (China Ministry of Water Resources), http://www.gov.cn/flfg/2007-12/29/content_847012.htm (accessed May 1, 2017), art. 2.

  68. 68.

    Ibid.

  69. 69.

    Ibid, art. 3.

  70. 70.

    Ibid, art. 12.

  71. 71.

    Notice on Water Quantity Allocation (China Ministry of Water Resources), http://szy.mwr.gov.cn/tztg/tzgg/201405/t20140526_563633.html (accessed May 1, 2017).

  72. 72.

    Ibid.

  73. 73.

    Ibid.

  74. 74.

    Australia China Environment Development Program, Report on the Development of Water Rights and Trading in the Peoples Republic of China, 95.

  75. 75.

    China 2002 Water Law , art. 48.

  76. 76.

    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. 2.

  77. 77.

    Ibid, art. 4.

  78. 78.

    China 1988 Water Law , art. 3. It states that: Water resources shall be owned by the state, that is, by the whole people. The waters of ponds and reservoirs belonging to rural collective economic organizations shall be owned by the collectives.

  79. 79.

    China 2002 Water Law , art. 3. It states that: Water resources shall be owned by the state. The State Council shall exercise ownership of water resources on behalf of the state.

  80. 80.

    Ibid.

  81. 81.

    China 1988 Water Law , art. 14.

  82. 82.

    China 2002 Water Law , art. 21.

  83. 83.

    2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 5.

  84. 84.

    Ibid, art. 7. And 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. 4.

  85. 85.

    As discussed in the previous section on water planning , to restore the deteriorated surface and groundwater systems, the national water plan has specified water resources availability for each major river basin as the maximum upper control limit for exploitation and utilisation of water resources.

  86. 86.

    2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 15.

  87. 87.

    2008 Measures on Administration of Water Abstraction Permits , art. 17.

  88. 88.

    2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 15. 2008 Measures on Administration of Water Abstraction Permits, art. 18.

  89. 89.

    Ibid, art. 38. 2006 Regulation on Administration of Water Abstraction Permits and Water Resources Fee Collection, art. 28.

  90. 90.

    Interviews with water users in Inner Mongolia on November 7, 2006.

  91. 91.

    China 2002 Water Law , art. 64. 2006 Regulation on Administration of Water Abstraction Permits and

    Water Resources Fee Collection, art. 47.

  92. 92.

    For further details about the paid water transfer from agriculture to industry in the Yellow River Basin , see Sect. 4.4.3.

  93. 93.

    Ping Jiang, “Ideals and Realities of Property Law ,” Forum for Social Sciences (2007), 59.

  94. 94.

    Ibid, 79.

  95. 95.

    China 2007 Property Law , art. 5.

  96. 96.

    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).

  97. 97.

    Edella Schlager and Elinor Ostrom, “Property Rights Regimes and Natural Resources: A Conceptual Analysis,” Land Economics 68, no. 3 (1992): 250–251. For details, refer to Sect. 2.2.3.

  98. 98.

    China 2007 Property Law , art. 53, art. 54.

  99. 99.

    For further details about the Dongyang-Yiwu water trade, see Sect. 4.4.1.

  100. 100.

    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. 3.

  101. 101.

    Chunmei Mao, “The Implementation of Water Resources Fees in the New Age of China ,” China Water Resources 15 (2007), 8.

  102. 102.

    China 1988 Water Law , art. 34.

  103. 103.

    1997 Water Conservancy Industrial Policy (China State Council), http://www.cws.net.cn/law/W05.htm (accessed September 27, 2008), art.17.

  104. 104.

    China 2002 Water Law , art. 7.

  105. 105.

    Ibid, art. 48.

  106. 106.

    China 2007 Property Law .

  107. 107.

    Hodgson, Modern Water Rights, 47.

  108. 108.

    2016 Provisional Measures on Administration of Water Rights Trading .

  109. 109.

    Ibid.

  110. 110.

    2005 Advice on Improving the Establishment of Water Users’ Association of Farmers (China Ministry of Water Resources, National Development Reform Commission, and Ministry of Civil Administration),

    http://law.chinalawinfo.com/newlaw2002/SLC/slc.asp?gid=66344&db=chl&keyword=%E6%94%B9%E9%9D%A9%E5%A7%94%E5%91%98%E4%BC%9A (accessed September 27, 2008).

  111. 111.

    Cui, Studies on Quasi Property Rights, 298.

  112. 112.

    Chengbo Xu, “Water Users Associations in Rural China : Thoughts on the Operation Patterns,” China Water Resources 5 (2010): 21–24.

  113. 113.

    Xiaojun Hu et al., “Integrated Water Resources Management and Water Users Associations in the Arid Region of Northwest China : A Case Study of Farmers’ Perceptions,” Journal of Environmental Management 145 (2014): 162–169.

  114. 114.

    Roger C. Calow et al., “Irrigation Development and Water Rights Reform in China ,” International Journal of Water Resources Development 25, no, 2 (2009): 227–248.

  115. 115.

    Caponera, National and International Water Law and Administration, 31–32.

  116. 116.

    Ibid, 43.

  117. 117.

    Robert Speed, “A Comparison of Water Rights Systems in China and Australia ,” International Journal of Water Resources Development 25, no, 2 (2009): 389–405.

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  1. College of Business, Victoria University, Melbourne, VIC, Australia

    Min Jiang

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Jiang, M. (2018). Initialising Tradable Water Rights. In: Towards Tradable Water Rights. Global Issues in Water Policy, vol 18. Springer, Cham. https://doi.org/10.1007/978-3-319-67087-4_5

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