A tidal shoal refers to a land area formed by the deposition of sand and earth in rivers. There are around 3.5 million mu (1 mu=667 square meters) of such tidal shoal areas. The development and utilization of tidal shoals refers to the deposition, enclosed use, utilization and protection of such areas with approval. The administration of tidal shoals has been stipulated in relevant laws and regulations of the Shanghai Municipality for the observation of law and regulations, orderly development and effective protection. The Regulations of the Shanghai Municipality on the Administration of Tidal Shoals stipulates that:

(1) The tidal shoal area belongs to the State; no enterprises or individuals can occupy the area illegally;

(2) the development and utilization of tidal shoal areas by domestic and foreign investors are encouraged; the investor is, accordingly, the beneficiary;

(3) the development and utilization of tidal shoal areas shall meet the overall planning requirements;

(4) the development and utilization of tidal shoal areas shall be conducive to the stabilization and deposition of the tidal shoal;

(5) the development and utilization of tidal shoal areas shall not negatively affect the ecological environment, marine life, navigation, river area security and flood-prevention facilities;

(6) a license system is adopted for the development and utilization of tidal shoals;

(7) qualified enterprises shall be in charge of the deposition and enclosing of tidal shoal areas;

(8) enterprises or individuals that develop or utilize tidal shoal areas have the obligation to protect the area and banks;

(9) enterprises or individuals that develop or utilize tidal shoal areas shall give support to the confiscation of tidal shoal area usage by the State because of national defense, flood-prevention or other economic and social undertakings;

(10) a certain usage fees shall be paid for the use of tidal shoals;

(11) those who enclose tidal shoal areas for farming will receive a subsidiary from the Shanghai Municipal Water Affairs Bureau and can benefit from agriculture tax exemption for a certain number of years;

(12) with the approval from the Shanghai Water Affairs Bureau, no usage fee shall be charged for enclosing tidal shoal areas for public interests;

(13) an application shall be submitted for the transfer of usage rights or a change of usage purposes, and

(14) those who breach the articles of the Regulations of the Shanghai Municipality on the Administration of Tidal Shoals shall be punished accordingly.