In 2011, the State Council has approved a new policy document which outlines the country’s priority development issue. The government committed to invest 608 billion USD over the next 10 years in water supply projects, water quality improvements, water and soil conservation, ecosystem rehabilitation, irrigation, and managing increasing demand. This new investment level amounts to an annual doubling of what was spent in 2010. The Minister of Water Resources says the country will accomplish this goal by following three red lines: less water exploitation, more efficient water use, and less water pollution. Instruments, such as water abstraction permits, water charges, and institutions that manage water at local levels, have also been strengthened.
Asian Development Bank (ADB) is assisting Guiyang with a 150 million USD loan for the Guiyang IWRM Project. The project finance is part of Guiyang’s water sector development plan and this aims to promote greater community involvement in water resources management. It represents the country’s first large integrated water resources management project at the municipal level. To lay the groundwork for the project, ADB is providing technical assistance to develop the capacity and enhance the effectiveness of the numerous government agencies overseeing the water sector.
Actions have also been taken for the construction of new facilities, intended as preventive actions for a subsequent drought. The general water stress in the North and the increasing number of droughts has convinced many planners of the need for big infrastructure projects, such as the South–North Water Diversion Project. The first results show that in spite of an expanded irrigation, agricultural water consumption decreased by about 3% and the total value of agricultural output (irrigated and non-irrigated) increased by about 230%.