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China starts 25 major water projects in H1 2026; investment hits RMB515.1 billion

Published: Updated: By 24TopNews Editorial Desk

In the first half of 2026, China launched 25 major water conservancy projects, including the Three Gorges New Waterway and Liaodong Peninsula water allocation scheme, while completed water conservancy investment reached RMB515.1 billion. The national water network now covers 80.3% of the country's land area, with 35 of 40 planned backbone channels and 473 of 588 key storage nodes built or under construction. Annual investment has exceeded RMB1 trillion for four consecutive years since 2022. Flood control, irrigation and regional water supply projects advanced, with 387 million mu of farmland drained during flood season. Irrigated land contributed 88.11% of summer grain output.

Since the start of 2026, China has accelerated the construction of a modern water network. In the first half, 25 major water conservancy projects were started, including the Three Gorges New Waterway, Phase-I of the Taipu River follow-up works, the Fujian Shangbaishi water-control hub, the Liaodong Peninsula water resources allocation scheme, the Guangdong Leizhou Peninsula irrigation district, and the modernisation of the Anhui Pishihang irrigation district. National water conservancy investment has remained at a high level. So far, 35 of the 40 backbone water delivery and drainage channels planned under the national water network have been built or are under construction, and 473 of the 588 key storage nodes are built or under construction. The national water network covers 80.3% of the country's land area.

For four consecutive years since 2022, annual water conservancy investment has exceeded RMB1 trillion. In the first half of 2026, completed water conservancy investment nationwide reached RMB515.1 billion. The Ministry of Water Resources adheres to the principle of “projects follow planning”, strengthening project pipeline and reserve management, and establishing a rolling mechanism of “implementing a batch, advancing preliminary work for a batch, reserving a batch, and planning a batch”. In securing funding, the multiplier effect of government investment is leveraged while striving to attract more local government special bonds, bank loans, and social capital for water development.

Progress on works under construction continues to be refreshed. The Xijiang Datengxia and Guangxi Luojiu water-control projects passed completion acceptance. The Hefei water source project of the second phase of the Yangtze-to-Huaihe water diversion entered trial operation. The Wanning tunnel of the Hainan Niululing irrigation project and the No. 2 water conveyance tunnel of the Heilongjiang Linhai reservoir achieved full breakthrough. The dam of the Guizhou Huatanzi reservoir reached the 430-metre flood-season elevation. The last turbine-generator unit of the Xinjiang Dashi Gorge water-control project was hoisted into place. The main works of the Jiangxi Meijiang irrigation district were fully completed. In the first half of the year, 25 major water conservancy projects were started, close to the total number started in the whole of 2025. For flood-control security, seven flood-control projects were launched, including Phase-I of the Taipu River follow-up works and the regulation of the main stream of the Zhang River. For water-supply security, nine projects were started, including the Liaodong Peninsula water resources allocation, the Chongqing Fushouyan reservoir, and the Yunnan Nanguaping reservoir. To promote coordinated regional development, the Three Gorges New Waterway project broke ground on 8 June, the first major national landmark project launched during the 15th Five-Year Plan period.

Since the flood season began in 2026, heavy rainfall has hit the Pearl River basin, the middle and lower reaches of the Yangtze River, North China, and Northeast China, causing floods in some areas. The Ministry of Water Resources has guided and urged relevant regions to strengthen dredging of irrigation and drainage canals, enhance dispatch of drainage pumping stations, and, when necessary, install temporary drainage pumps to promptly remove accumulated water from farmland. Nationwide, the drained area has reached 387 million mu.

In the Hai River basin, construction of six reservoirs started — the Zuanziling and Erdaohe reservoirs in Beijing, and the Wulahada, Qingshan, Louli and Yegoumen reservoirs in Hebei — which upon completion will add 467 million cubic metres of flood-control storage capacity. Regulation works on 24 backbone river channels, including the North Canal, Yongding, Daqing, Ziya and Zhangwei rivers, are advancing in full. Twenty-five national flood-detention basins, including Dongdian, Wen’anwa, Jiakouwa, Langouwa, Xiaoqinghe flood-diversion zone and Xianxian flood-retarding area, are being built at an accelerated pace; once completed they will provide 17.5 billion cubic metres of detention storage. In the Yellow River basin, construction of the Guxian water-control project is progressing in an orderly manner, the 14th Five-Year Plan flood-control works for the lower Yellow River have been fully completed, the river regulation project on the upper Ningxia reach is finished, and works on the Qinghai, Gansu and Inner Mongolia reaches are speeding up. In the Songhua-Liaohe basin, regulation of 31 major tributaries, 125 small and medium rivers, and 68 flash-flood channels is being stepped up.

In the first half of 2026, construction started on three large irrigation districts — the Guangdong Leizhou Peninsula and Jiangxi Jinggang districts — and on modernisation of five large irrigation districts, including Anhui Pishihang, Zhejiang Siminghu and Hunan Qingshan Water Wheel Pump. Thanks to steady progress in irrigation district construction and renovation, summer grain output on irrigated farmland in 2026 accounted for 88.11% of the national total summer grain output. Nationwide cumulative irrigation water supply has reached 128 billion cubic metres in 2026, with an irrigated area of 670 million mu. The Ministry of Water Resources, together with relevant departments, allocated central funds of RMB15.8 billion to support the construction of 13 large irrigation districts and to implement modernisation of 109 large and medium-sized irrigation districts such as Ningxia Qingtongxia and Jiangsu Tongzhou Tuanjie. At the same time, “hard investment” and “soft construction” are being advanced in tandem, with improvements to operation and maintenance mechanisms and water pricing systems, and promotion of effective links and information sharing between backbone irrigation works and high-standard farmland development.

Since 2026, local governments have deepened reform of irrigation investment and financing mechanisms. Nationwide, local government special bonds, bank loans and social capital totalling RMB258 billion were secured, an increase of 7% year on year.

24TOPNEWS IMPACT INTELLIGENCE

Why this event matters

The event has a measured impact on 3 industrys. The strongest current signal is positive for Municipal Utilities, with intensity 85/100 and 92% confidence over a medium term horizon.

Construction & Real Estate · 7.6

Municipal Utilities

Direction
positive
Intensity
85
Confidence
92%
Horizon
Medium term
Effective impact +72
Manufacturing · 6.8

Construction Machinery

Direction
positive
Intensity
75
Confidence
88%
Horizon
Short term
Effective impact +61
Agriculture · 4.1

Crop Production

Direction
positive
Intensity
68
Confidence
85%
Horizon
Medium term
Effective impact +53

Impact figures are analytical estimates that combine direction, intensity, confidence and event importance. They are not investment advice.