To get around constitutional issues, the central government can "allow" the local and provincial authorities, and ONLY those authorities, to trade water rights. Beijing could collect a percentage as a fee for leasing water rights for an additional revenue stream. A potential threat to the intentions of this scheme would to allow SOEs, including military owned companies, participate as they are organs of the state. There should also be a verification mechanism by the Chinese EPA to ensure that contractual agreements for water quality and delivered volume are met.

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To get around constitutional issues, the central government can "allow" the local and provincial authorities, and ONLY those authorities, to trade water rights. Beijing could collect a percentage as a fee for leasing water rights for an additional revenue stream. A potential threat to the intentions of this scheme would to allow SOEs, including military owned companies, participate as they are organs of the state. There should also be a verification mechanism by the Chinese EPA to ensure that contractual agreements for water quality and delivered volume are met.