Decoding China’s water rights revolution in the new century: transitioning from a centralized to a hybrid system

Yahua Wang, Han Lyu and Mengdi Cao

International Journal of Water Resources Development, 2025, vol. 41, issue 5-6, 950-973

Abstract: China has adopted water rights reforms to optimize water allocation amidst rapid industrialization. This review outlines this evolution through three phases: exploration, policy maturation and market innovation. The market is challenged by small size, inefficient allocation, an incomplete institutional-conceptual framework and system conflicts, resulting from high reform costs and limited market benefits in the transitioning period. Comparisons with the US, Australia and Chile underscore China’s unique hybrid system of administrative dominance with market support. The study concludes that the market will remain auxiliary to administrative allocation in the foreseeable future, recommending legal clarity, targeted incentives and flexible trading models for sustainable development.

Date: 2025
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DOI: 10.1080/07900627.2025.2487663

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