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This study reveals the spatial distribution of water withdrawal and consumption by thermal power generation and the associated water stress at catchment level in China based on a high-resolution geodatabase of electric generating units and power plants. We identified three groups of regions where the baseline water stress exerted by thermal power generation is comparatively significant: (1) the Hai River Basin/East Yellow River Basin in the north; (2) some arid catchments in Xinjiang Autonomous Region in the northwest; and (3) the coastal city clusters in the Yangtze River Delta, Pearly River Delta, and Zhejiang Province. Groundwater stress is also detected singularly in a few aquifers mainly in the Hai River Basin and the lower reaches of the Yellow River Basin. As China accelerates its pace of coal mining and coal-fired power generation in the arid northwest regions, the energy/water priorities in catchments under high water stress are noteworthy. We conclude that promotion of advanced water-efficient technologies in the energy industry and more systematic analysis of the water stress of thermal power capacity expansion in water scarce regions in inland China are needed. More comprehensive and transparent data monitoring and reporting are essential to facilitate such water stress assessment.

During the past decades, the traditional state monopoly in urban water management has been debated heavily, resulting in different forms and degrees of private sector involvement across the globe. Since the 1990s, China has also started experiments with new modes of urban water service management and governance in which the private sector is involved. It is premature to conclude whether the various forms of private sector involvement will successfully overcome the major problems (capital shortage, inefficient operation, and service quality) in China's water sector. But at the same time, private sector involvement in water provisioning and waste water treatments seems to have become mainstream in transitional China.

Following the conviction that economic and pricing approaches are an essential addition to conventional command-and-control environmental regulation, China has gradually increased attention to, research on and experiments with the application of economic instruments in urban water management over the past two decades. This paper analyzes the actual application and implementation of economic instruments in Chinese urban water sectors, applying an ecological modernization perspective. Water tariffs in China have increased sharply over this period, increasingly representing full costs and increasing water use efficiency. But implementation of water tariffs does run into problems of unclear responsibilities, poor collection rates and institutional capacities. It is concluded that Chinese style ecological modernization should pay more attention to the institutional dimensions of natural resource pricing policies, if it is to profit from the theoretical advantages of economic approaches in urban water management.