The factors influencing the water supply price of a hydraulic project i nclude natural conditions and economic policies. This paper thoroughly demonstra tes the water price of South-to-North Water Transfer Project from the viewpoint of economic policies. It is considered that if the project is assigned as a pro fitable one and built depending on commercial loan from bank completely or mostl y, the water price will be too high to be undertaken by users,and if the proj ect places the public good at first while considering the economic benefit, its invest ment mainly relies on the state (national or local governments) appropriation an d self-raised funds and a little from the bank loan on favorable terms, the pric e determined according to the principle of satisfying the cost and reasonable pr ofit will be relatively lower and can be undertaken by the users in the North C hina where water shortage is serious. The problem of higher wa ter price of agr icultural irrigation to the north of the Yellow River can be tackled by taking m easures such as “compensating agriculture by industry” according to foreign pr actical experiences and relevant suggestions.
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