According to the Measures of the Shanghai Municipality on the Implementation of Water Law and the Measures of the Shanghai Municipality on Water Conservation and other laws and regulations, the use of water shall be well-planned to conserve water. Water users, whether enterprises or individuals, have the obligation to conserve water. Such obligations mainly include:

1. A water usage plan

Usage of public water has to be well-planned. The Shanghai Municipal Water Administration Department and the district/county level water conservation authorities shall, according to their respective responsibilities and requirements of water supply, check the annual and monthly water usage of water users. The water usage plan for each month shall be checked. Apart from the original water fee to be paid, an extra amount that equals five times the standard fee will be charged for the use of water exceeding the planned amount. Those who exceed the planned water usage amount for more than two months in a row will be charged extra fees, but the extra charge shall be no more than ten times the standard fee.

2. The transfer of the water supply

Water usage enterprises shall not transfer the water supply to other enterprises and individuals. If a transfer of the water supply to other enterprises and individuals is really needed, the approval from the Shanghai Municipal Water Administration Department or the district/county level water conservation authorities is needed.

3. The construction of water conservation facilities

During the construction of new, expansion or renovation (including technical upgrade) projects, construction companies shall build relevant water conservation facilities that are designed, constructed and put into operation together with the major structure. The Shanghai Municipal Water Supply Administration Department or the district/county level water conservation authorities shall be responsible for the approval of designing the plan for water conservation facilities for construction projects with more than 5,000 cubic meters of water consumption, and they shall participate in the project completion inspection.

4. The administration of water usage

Water users shall install water meters according to the regulations. Separate meters shall be installed to calculate the amount of the transferred water supply that has been approved. Water usage administration systems and accounts shall be established and constantly improved by the water users. Water usage amount balance testing shall be carried out regularly according to requirements of the Shanghai Municipal Water Supply Administration or the district/county level water conservation authorities. Water conservation measures shall be included in technical upgrades of enterprise facilities. Recycled water use shall be encouraged. Cooling water shall not go directly into the drainage.

5. The administration of water usage of residences

Separate water meters shall be installed in newly-built residence housing. No monthly package shall be offered to such users.

6. The use and administration of water conservation equipment, facilities and tools;

Enterprises and individuals shall use equipment (including cooling towers) and tools that conserve water. Water conservation and spill-prevention facilities shall be installed. Enterprises with parking facilities for more than fifty vehicles shall have facilities that recycle water for vehicle washing. Toilet and toilet fittings that conserve water and meet the State standards shall be installed in newly-built buildings. Older-style toilets and toilet fittings in old buildings shall be gradually replaced.

Water supply enterprises and property management enterprises shall strengthen the administration, repair and maintenance of water supply equipment (including roof tanks) and tools to reduce the waste of water. The leaking of water equipment, facilities or tools, or reports of leaking, shall be properly dealt with on-the-spot within a certain period of time.