The Water Entitlements and Trading (WET) project is a joint initiative between AusAID, the Department of the Environment, Water, Heritage and the Arts (DEWHA) in Australia and the Ministry of Water Resources (MWR) in China. The project is designed to use Australian experience to develop a regime of water entitlements and trading suitable for adoption across China and assist MWR move toward a better water management system.
Phase 1 developed water management and trading framework for China, based on a comprehensive review of existing arrangements. The framework is designed to provide an integrated system for clearly defining rights to water, and for the allocation and trading of water in an ecologically sustainable manner. Phase 1 of the project was completed in 2006.
Phase 2 involved detailed work on the policy and technical requirements for implementation of a WET framework, including aspects of water resources allocation planning, environmental flows management and the management of water resources within irrigation districts. Phase 2 of the project was completed in early 2008.