The purpose of this Law is for the rational development, utilization, preservation, and protection of water, for the prevention and control of water disasters, and for the sustainable utilization of water resources in order to meet the needs of national economic and social development. The "water resources" referred to in this Law includes surface water and groundwater.
The Law consists of 8 Chapters dealing with: General Provisions; Planning of Water Resources; Development and Utilization of Water Resources; Protection of Water Resources, Water Areas and Water Projects; Allocation and Economic Use of Water Resources; Settlement of Disputes over Water and Supervision and Inspection of Law Enforcement; Legal Liabilities; and Supplementary Provisions.
Water resources shall be owned by the state. The State Council shall exercise ownership of water resources on behalf of the state. Water in the ponds of rural collective economic organizations and in the reservoirs constructed and managed by rural collective economic organizations shall be used by those organizations. The state shall protect water resources and adopt effective measures to preserve vegetation, plant trees, grow grass, conserve water sources, prevent and control soil erosion and water pollution, and improve the ecological environment.
The state shall formulate the strategic plan for water resources of the whole country. Watershed plans include comprehensive watershed plans and special watershed plans; region plans include comprehensive region plans and special region plans. Construction of a water project must be in conformity with the comprehensive watershed plan. The construction entity shall obtain the written consent before commencing the construction of a water project on an important river or lake. The development and utilization of water resources shall first satisfy the needs of the urban and rural inhabitants in their domestic use of water and give overall consideration to the agricultural, industrial and ecological need for water as well as to the needs of navigation. In dry and semi-dry areas, the development and utilization of water resources shall take into full consideration the ecological environment's need for water. The Law further provides for groundwater overdraft measures to control mining of groundwater, protection of safe drinking water areas, prohibition on waste or refuse into rivers, etc.