Water Right Institution and Strategies of the Yellow River Valley

With the rapid economic and social development in China, pressure on water resources in the Yellow River is becoming more and more prominent. For the sustainable social, economic and agricultural development in the Yellow River valley, it is imperative to create the perfect water right institution, which plays a key role in improving the efficiency, equity and sustainability of water use. This article analyzes the problems with the water right institution of the Yellow River valley, which includes unclear definition of water right, ineffective allocation mechanism, low water price, and water pollution. Correspondingly, some measures need taking in order to address these challenges. First of all, the water right, especially tradable water right should be well defined. In the article, water right is defined as a series of water management capabilities and use requirements. Then, water right allocation system should be built up, including examining and approving water usufruct, the paid transfer, and the paid utilization of water right. In the end, based on the well defined tradable water right and the well developed water right allocation system, water right market should be developed, which will promote the transfer to the highest valued water uses. When the water right trade happens, the water right price should be fixed in certain situation. On one hand, the water right price should be raised; on the other hand, the water right price should be determined according to a two-part water price system. Of course, market should not be the only role in the water right institution. The authorities should also be necessarily responsible for water right organizations, which make proper water right law, policy and regulations that assist the smooth going of water right market. There are some other measures for the yellow river, such as a water booklet should be recorded for mastering the detailed situation of water resources in the Valley; the South-to-North Water Diversion Project should be accelerated in order to alleviate the water scarcity. All the above measures will do good to resolve the problems of water resources of the Yellow River valley when they are correctly taken.