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DOI:10.13522/j.cnki.ggps.2026025
Agricultural water price reform in China: Evolution, outcomes, and pathways for optimization
Xie Meihui, Zhong Xiaoyong, Jin Yanqing, Xiao Zegan
1. School of Business Administration, Jiangxi University of Water Resources and Electric Power, Nanchang 330099, China; 2. Emergency Management Research Institute, Party School of the CPC Central Committee (National Academy of Governance), Beijing 100089, China; 3. College of Public Administration, Nanjing Agricultural University, Nanjing 210095, China
Abstract:
【Objective】Agricultural water price reform in China aims to improve irrigation water-use efficiency and balance water conservation with agricultural production and farmer livelihoods. This paper systematically reviewed the evolution of the reform, its pricing mechanisms and implementation outcomes, and identified pathways for further improvement.【Method】The review was based on 264 academic papers and policy documents published in both Chinese and English between 2006 and 2025, supplemented by representative pilot cases from irrigation districts across the country.【Result】By the end of 2025, agricultural water price reform had been implemented nationwide, covering more than 72.4 million hectares of land. Although the national average effective utilization coefficient of irrigation water had increased to 0.583, it remained below the levels reported for developed countries. Actual agricultural water prices showed substantial regional variation and remained below theoretically estimated cost-based levels in most regions. The water-saving response to agricultural water pricing followed a nonlinear and stage-dependent trajectory: traditional agronomic practices responded strongly to pricing but had limited water- saving potential, whereas the adoption of modern water-saving technologies depended on capital investment, implementation scale, and technical and service support. Furthermore, the reform resulted in increased livelihood pressure on smallholders and farmers in hilly and underdeveloped regions, potentially reshaping cropping patterns in these regions.【Conclusion】To balance water conservation, farmer income and the sustainable operation of irrigation districts, China should establish a region-dependent agricultural water-pricing system, strengthen the linkage between water-saving subsidies and incentives, and promote the application of digital technologies and socialized agricultural water-management services. These measures can help enhance the effectiveness and equity of agricultural water price reform and support the sustainable use of agricultural water resources.
Key words:  comprehensive reform of agricultural water pricing  policy evolution  pricing mechanism  implementation effects  optimization pathways