【正文】 er ` 15 in recent years has brought enormous loss to industrial and agricultural production and residents’ life. According to the investigation and analysis of relevant department, the economic losses of industry and agriculture caused by water resources shortage and dryingup added up to 26,800 million RMB (1US$= RMB as of February 2020) from 1972 to 1996 in downstream of the Yellow River, and average yearly loss caused by dryingup alone was nearly 1,400 million RMB (1US$= RMB as of February 2020) at the price of 1995 . The paytouse mechanism of water resource is still not perfect. The 48th regulation of ―Water Law‖ requires that the party to gain water right needs to pay for water resources, but it still lacks detailed regulations about collection means, collection way, management and utilization. Furthermore, the standard of charge for water resources is on the low side. While the highest charge exceeds 12 RMB per ton, the lowest charge for water resources is only 1 RMB per ton, even the water use for hydropower (that has significant economic benefits) is only – cent/kWh. The Yellow River Water Conservancy Committee is only responsible for the administration of managing and supervising the governmentowned water resources, and this is unfavorable for the integrated management of water resources under the market condition. In addition, the mechanism for water price is not perfect. Price is the money form of modity’s value. The price of any modity lies on its cost and scarcity. A rational water price should reflect the real value of water and the water’s effect on economy,ecology and environment. Considering the water’s monality and speciality, many Chinese scholars suggest that a rational water price includes the price of water project, the price of water resources, and the price of water environment. The price of water project is the whole laboring value of the project from water pumping to water supply. The price of water resources is water resources fee, corresponding to the scarce degree of water. Corresponding to environmental restoration and pensation, the price of water environment is the government’s charge,including the fee of wastewater discharge and treatment . Water price includes above three parts does not indicate that all the three parts will be included in the mercial water price. Tax and additional fee, etc. are also good measures. In China the present water price only involves the price of water project . The upstream water price is lower than downstream water price. For example,pared with the average water price of the upper reaches of the Yellow River was RMB yuan per cubic meter in 1998, it was RMB yuan per cubic meter of the lower reaches of the Yellow River. Investment system is different from the water price management system, and the upstream water price can not be adjusted in accordance with downstream water price. Furthermore, the cost of urban water supply only pensates for the water purification expense, not for the sewage disposal expense . Secondly, water price is seriously on the low side. According to Table 4, even in the arid season, service water price is only cent/m3, and the agricultural ` 16 water price is less than cent/m3. At present water price only accounts for 30–40% of water supply cost in the Yellow River valley, and the head canal water price only accounted for 18% in 1997 and 20% in 1998. The low water price not only causes serious water waste, but also impacts the function of the watermanaging departments. Finally, the management system of water price is not perfect. There are no specific water price administrative departments and no professional charge team familiar with operational knowledge. Metering facilities, such as flow measuring weir and flowvelocity meter are outdated. There is no supervision measure about the water price of the Yellow River, and policy violation is mon. Problems with the Current Water Resources Management and Transfer System Water allocation dictated by the government is not enforced. Before the integrated water resources transfer of the Yellow River, every province’s actual water utilization is greatly different from ―1987 Scheme‖. From 1989 to 1995, Inner Mongolia and Shandong always diverted more surface water than water allocation target, so did Qinghai in 1991 and 1992. On the contrary, provinces of Shan’xi, Shanxi, He’nan channel much less water than the allocation goal. After the integrated water resources transfer, the situation has not changed much. Provinces of Gansu, Ningxia and Inner Mongolia draw much more water than the allocation target in the waterdrawing peak season. According to the waterdrawing report from November 2020 to June 2020, billion cubic meters’ water was allocated to these three provinces in proportion to a pan coefficient of , in contrast with actual water utilization of billion cubic meters, which cause the actual average runoff to reduce by –13% from the target. During the months of May and June of 2020, the actual runoff was reduced by 25%, 63%, and 18%, respectively, in Shizuishan, Toudaoguai and Tongguan, and the water storage of Sanmen Gorge on the Yellow River and Xiaolangdi reservoir decreased greatly. As a result, water utilization in He’nan and Shandong was seriously affected. In addition to the allocation problem, equidistant change of water utilization is not favorable for optimal configuration of water resources. ―Managerial method of water transfer of the Yellow River‖ stipulates that yearly water utilization in every province should be increased in rainy season and decreased in arid season equiproportionally. However, water resources of the Yellow River is not uniform spatially and temporally. Consequently, the provinces with less rainfall have to draw water above