China Agricultural Policy Research Center, Peking University China Agricultural Policy Research Center, Peking University

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As China’s economy have rapidly grown in recent years and demands of water for production and life have greatly increased, shortage of water resource become so serious that it block further development of society and economy. Despite agriculture department always covers maximal part of water use, increased demands of water for industrial and domestic use have drastically competed with water use for agriculture, which threaten food production and safeguard. Besides investing hydro project and developing technologies of saving water, government recently began to promote the irrigation system reform. Since 1990s, the reform of agriculture water management has improved, and the two major forms of water management reform, water users’ associations (WUAs) and contracting, have begun to systematically replace traditional forms of collective management. During the reform, government has played an important role.
 
But how about the result of management institutional reform? Current studies show that irrigation system reform isn’t successful in all areas. While reform with incentives had positive effect on water use, crop production, farmer income and society equality, nominal reform without incentives didn’t reach prospective goals, even making water shortage more serious.
 
The analysis will focus 4 irrigation districts in the Yellow River Basin(Weining and Qingtongxia irrigation district in Ningxia province, and Renmingshengli and Liuyuankou irrigation district in Henan province). We will demonstrate that only reform with incentives can reach the prospective goals through using descriptive statistics and multivariate analysis to assess the effect of reform on irrigation timing, cropping patterns and water rate collection, and provide policy advice on future reform of surface water management institution.