13. Water Resource Assets Management Reform

This chapter analyzes the water resources asset management reform, which aims to develop the water resources ownership rights system in China. The policy framework and key reforms are discussed. The influences on water resources management are examined. The fundamental role of water resources asset management reform is to separate property rights and management power, and further ownership rights and usufructuary rights, by developing and exercising ownership rights. The reform will have a long-term impact on resources development and usage. The significant strengthening of state ownership rights and their benefits develops the basis for resources tax and fee levying as owner’s benefits and increases the potential benefits for usufructuary rights transfer from the owner. The enriched usufructuary rights provide more options to allocate water resources by market mechanism. However, the Ministry of Natural Resources, as an administrative department and an organ of the State Council, exercising ownership rights on behalf of the state may conflict with its management functions. At the same time, the problem exists in the central and local relationship.