Study On The Regulation Of China Water Industry

Water industry, including water source, water supply, water transportation, sewerage reclaiming and disposing, etc. is the base source of social survival and development. For a long time, water industry was considered as commonweal project, and monopolize by local government in investment and managment, as a result the water was supplied with low price. This system hold back the development of water industry, on one hand, the cost can't be compensated for; on the other hand, the citizens have no awareness of saving, the water is wasted heavily which results in deterioration of water environment . Water has become the bottle-neck of China development. In order to ease the crisis of water resource and build a saving society, we started the process of reforming since 1990. The actions, including the discerption between the company and government, the abruption between fund and government, the operation dividing, have made great progress. Great private capital enter water industry which ease the capital pressure and promote the industry'managing efficiency . The water price reforming has changed the situation of low-priced water supply. It can be said that we have acquired the success in this phase. However, due to the history, the old style of government management has not quit from the stage. The role of the marketing economy in adjusting companies'behavior and motivating the companies'efficiency is limited. The low price, unreasonable price caculating style and chaos marketing mode are the limitation of development. To solve these problems, we should rebuild the regulation structure of water industry.There are two lays in rebuilding the regulation structure of our water industry. One is government, many problems such as bad revenue, the lack of fund and overstaffed organization are the results of the government's management. So from the lay of government, the key is that the government should be apart from the company, and to realize the"retreat"and"changing". That is to build special regulating organization. The other lay is the company. The key is to divide operation into the monopoly operation and competing operation, then to make the competing operation compete and to regulate the monopoly operation. To ensure the success of the reform, the first thing is to build and perfect the law. Competition and regulation should lay on the perfect law.This article is to rebuild our water industry regulation structure based on the experience of the British reform and the suggestion proposeded by our scholars.