Improving the Performance of China???s Urban Water Utilities

In the 1990s, China's water supply infrastructure was in a very poor state. Municipal wastewater treatment was almost nonexistent. Public utilities were inefficient. Prices for water were unsustainably low. Since then, large investments have been made in water supply and wastewater infrastructure, and tariffs for water and wastewater have increased. China's national ministries and agencies have issued directives on water pricing, utility regulation, wastewater treatment, private sector participation, and other reforms. Chinese and international companies are now active in the sector. However, many complex financial, institutional, and technical challenges lie ahead. China's water supplies are limited, its rivers are among the most polluted in the world, and its coastal waters are on the brink of ecological collapse.