The Asian Development Bank will offer grants to help China to formulate the water resources management framework for the allocation of water resources to meet the needs of an increasing population and a fast growing economy.

ADB will offer USD500,000, and its Multidonor Trust Fund, under the Water Financing Partnership Facility, will offer USD250,000 for the framework. China will be responsible for the remaining USD200,000.

Water plays a key role in human health and welfare, environmental safety, and economic growth. Challenges come not only from the management of declining water resources, but also from the shortage of water and the imbalance between supply and demand. China has 20% of the world's population, but only 7% of global fresh water resources. Population growth, rapid economic development, and the absence of a clear framework to govern water rights and allocation, have increased water use and competition among users, worsening water pollution.

An official of the ADB said that an effective water resources allocation system will help improve the safety and stability of river basins and water resources, and promote the prosperity of both the regions and the country. A sound allocation system will allow water resources to be distributed among different regions and users. Rules will be made to protect the environment and for sustainable development by allocation of water resources.

The new framework will protect water resources from overexploitation. It will also include measures to accommodate new users while protecting existing ones.