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Water Entitlement and Trading Actability - Phase 2 (WET Phase 2)

Objectives: The goal of the WET Phase 2 is to further develop and strengthen the WET framework developed under WET 1 and thus help position the Chinese Government to move towards a water management system that:

  • better defines rights to water and provide greater certainty and security to right holders
  • ensures rights to water are granted within the environmentally sustainable limits of the watercourse or aquifer
  • allow for the allocation and transfer of water rights in a way that is transparent, involves relevant government bodies, community groups and individuals, and encourages the efficient use of water
  • allow for a shift towards market mechanisms as the basis for allocating water.

WET Phase 2 will contribute to achieving this goal by providing high-level policy and technical assistance to further develop and refine the WET framework, to test aspects of the framework at a provincial level and to build the capacity of staff within MWR and at a provincial level to implement a WET system.

Australian Contribution: A$2.08 million

Duration: 2007

Location: MWR, Inner Mongolia and Zhejiang

Project Components:

  • Component 1: High level policy work: assisting MWR in developing more of the detailed policy that will be required to support and implement the WET framework
  • Component 2: Technical assistance to develop the system tools that will be necessary to support a WET system
  • Component 3: Capacity building, to develop within MWR and regional staff the skills and processes that will be necessary to implement and manage a WET system.

All three components will involve elements both at the central government level and work in the two pilot provinces.

Achievements:

The final project report includes:

  • Policy recommendations in respect of water resources allocation planning, water allocation in irrigation districts, urban water management, water accounting, water licensing, and hydrological modelling;
  • a guideline for determining and defining environmental flow requirements for rivers;
  • a pilot study, demonstrating the application of the water allocation and environmental flow guidelines to the JiaoRiver, in Zhejiangprovince; and
  • a pilot study, demonstrating the application of a "water rights" approach within Hangjin Irrigation District, in Inner Mongolia.

Managing Contractor:

This is a joint initiative between AusAID, the Department of the Environment, Water, Heritage and the Arts (DEWHA) in Australia and the Ministry of Water Resources (MWR) in China. Cardno Acil Pty Ltd is engaged by DEW to provide administrative and logistical support to the Activity.

Chinese Counterparts: Department of Water Resources, Ministry of Water Resources.

AusAID contact person:

Gao Ying
Senior Policy Officer
No 21, Dong Zhi Men Wai Dajie, Beijing, PRC
Tel: +86-10 5140 4407
Fax: +86-10 5140 4199
Email: ying.gao@dfat.gov.au

May 2008

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