3 January 2014, The National Development and Reform Commission (NDRC) and the Ministry of Housing and Urban Construction (MOHURD) have issued a guidance document on an urban three tier water tariff system to be implemented before the end of 2015. The progressive tariff system is intended to promote sustainable use of water resources and to help conserve water amongst urban residents.

The three price tiers are summarised below.

1. Water use above 80% of average monthly urban household;
2.  Water use above 95% of average monthly urban household; and
3.  The document does not provide a percentage but outlines that the first, second and third tier will follow a pricing ratio of 1:1.5:3.

The document stated that the system will be implemented under strict supervision but that adjustments will be made if necessary and that the monitoring process will be transparent.

Click here for the announcement. (Chinese only)