Recently, the General Office of the Ministry of Housing and Urban - Rural Development and the General Office of the National Development and Reform Commission jointly issued the "Notice on Strengthening the Control of Water Loss in Public Water Supply Networks". The notice clearly proposes that "for pipes with a diameter of 80 mm and below, the use of thin - walled stainless steel pipes is encouraged", which has brought new impetus and favorable policies to the development of the stainless steel pipe industry.

Notice on Strengthening the Control of Water Loss in Public Water Supply Networks

(I) Working Ideas

Guided by the Thought on Socialism with Chinese Characteristics for a New Era, we should adhere to the principle that the people build the city and the city serves the people. In accordance with the requirements of building a resilient city, we should give priority to water conservation, do our best within our capacity, and scientifically and reasonably determine the goals for controlling water loss in public water supply networks in cities and counties. We should adhere to a problem - oriented approach, combine actual needs and implementation possibilities, distinguish priorities, scientifically plan project tasks, and reasonably arrange the construction schedule. In old urban areas, we should seize the opportunity of renewal and renovation to make up for the shortcomings of the water supply network; in new urban areas, we should plan and build the water supply network from a high starting point and with high standards. We should adhere to market - orientation and government guidance, further improve the water price formation mechanism and incentive mechanism, and build an accurate, efficient, safe, and long - term water supply network water loss control model.

(II) Main Objectives

By 2025, the facilities of water supply networks in cities and counties will be further improved, the level of pipeline pressure regulation will be further enhanced, the incentive mechanism and the construction, renovation, operation, and maintenance management mechanism will be further improved, and the level of water loss control in water supply networks will be further improved, and a long - term mechanism will be basically formed. In areas where the water loss rate of urban public water supply networks has reached the first - class evaluation standard determined by the water loss control and evaluation standards, the water loss rate should be further reduced; in areas that have not reached the first - class evaluation standard, the water loss rate should be controlled within the first - class evaluation standard; the national water loss rate of urban public water supply networks should strive to be controlled within 9%.

(III) Implementation of Water Supply Network Renovation Projects

In combination with urban renewal, the renovation of old residential areas, the renovation of secondary water supply facilities, and the renovation of the one - household - one - meter system, the water supply networks that have exceeded their service life, have backward materials, or are damaged and in disrepair should be renovated to ensure construction quality. Advanced, applicable, and reliable water supply network pipe materials should be used. For pipes with a diameter of 100 mm and above, high - quality pipe materials such as steel pipes and ductile iron pipes are encouraged; for pipes with a diameter of 80 mm and below, thin - walled stainless steel pipes are encouraged; the new and renovated water supply networks should use flexible joints. The new water supply networks should be planned and constructed in strict accordance with relevant standards and specifications.

(IV) Promotion of Water Supply Network Zoning and Metering Projects

In accordance with the "Guidelines for the Management of Zoning and Metering of Urban Water Supply Networks", the implementation routes for zoning and metering of water supply networks should be selected as needed, and engineering construction should be carried out. In the construction and renovation of pipelines, equipment installation, and the construction of zoning and metering systems, advanced flow measurement equipment, valves, water pressure and water quality monitoring equipment, and data acquisition and transmission devices should be actively promoted to gradually achieve grid - based and refined management of water supply networks. The renovation of the "one - household - one - meter" system should be implemented. The water measurement system for municipal, greening, fire - fighting, and environmental sanitation purposes should be improved.

(V) Promotion of Water Supply Network Pressure Regulation Projects

The water supply network pressure regulation projects should be actively promoted, and the regional centralized water storage and pressure - boosting facilities for water supply networks should be planned and laid out in a coordinated manner to effectively improve the regulation level. For water supply networks with large differences in pressure distribution, water supply enterprises should install online water supply network pressure monitoring equipment, optimize the layout of pressure monitoring points, accurately identify the high - pressure and low - pressure areas of the water supply network, and optimize the pressure regulation of water plants. In the high - pressure areas of the water supply network, pressure regulation equipment should be installed at key nodes of the water supply network; in the low - pressure areas of the water supply network, the water supply pressure should be guaranteed by forming a water supply loop network and carrying out secondary pressure - boosting, etc., and the temporal and spatial balance of the water supply network pressure should be gradually achieved.

(VI) Carrying out the Intelligent Construction of Water Supply Networks

Water supply enterprises should implement intelligent transformation on the basis of completing the informatization of water supply networks. During the construction and renovation of water supply networks, relevant sensors can be laid synchronously to establish an Internet of Things - based intelligent management platform for water supply. The operation status of water supply facilities and information such as water volume, water pressure, and water quality should be monitored in real - time, the water loss points in the water supply network should be accurately identified, and the water supply network pressure should be intelligently regulated by region, and the informatization and intelligent management level of water loss in urban water supply networks should be gradually improved. The experience of intelligent transformation and operation management of water supply networks in typical areas should be promoted.

(VII) Improvement of the Water Supply Network Management System

An integrated mechanism from scientific research, planning, investment, construction to operation, management, and maintenance should be established to improve the system and the level of operation and maintenance management. Water supply enterprises should promote the interconnection and platform sharing of data such as the geographic information system of the water supply network, revenue collection, meter management, dispatching management, and water loss control, and strive to achieve unified collection, unified management, and unified operation. Water supply enterprises should further improve the water loss control management system, standardize work processes, implement operation and maintenance management requirements, strictly implement performance assessments, and ensure that responsibilities are implemented. The capacity building of practitioners in water supply network water loss control such as regional operation dispatching, daily inspection, leak detection, and emergency repair should be strengthened, and professional skills and management levels should be continuously improved. Local governments are encouraged to actively explore, in light of local conditions, entrusting the public water supply network facilities in residential communities to water supply enterprises for professional and unified management in accordance with the law.

(VIII) Strengthening the Implementation of Responsibilities

Urban (county) people's governments should be urged to effectively implement the main responsibility for controlling water loss in water supply networks, further straighten out the coordination mechanism for the construction and management of underground municipal infrastructure, improve the management level of underground municipal infrastructure, and reduce the impact on the stable operation of water supply networks. Urban water supply authorities should organize investigations into the current situation of water supply networks, find out the water loss situation and outstanding problems, formulate medium - and long - term goals for water loss control, determine the annual construction tasks and schedule, propose a list of projects, clarify the implementation entities, improve the operation and maintenance plan, and refine the safeguard measures. Water supply enterprises should implement their direct responsibilities in detail, ensure the implementation of construction tasks, actively implement water supply network water loss control projects; strengthen performance management, reform the business model, implement separate accounting of water volume in the water plant production and water supply network marketing links, cancel the "lump - sum fee" water supply system, and resolutely put an end to "favoritism water". The housing and urban - rural development departments of provinces should, together with the development and reform departments of provinces, guide the work of water loss control in water supply networks within their administrative regions. The Ministry of Housing and Urban - Rural Development, together with the National Development and Reform Commission and other relevant departments, will incorporate the formulation and implementation of water loss control goals into relevant assessments.

(IX) Increasing Investment

Water supply enterprises should integrate funds from relevant channels, increase investment, and strengthen the guarantee of funds for the construction, renovation, operation, and maintenance of water supply networks. Local governments can increase investment subsidies for water supply network water loss control projects. Cities and counties that meet the conditions are encouraged to issue local government special bonds and corporate credit bonds for water supply projects. It is encouraged to increase credit support, introduce social capital in a location - specific manner, and innovate the investment and financing models in the water supply field. Cities and counties that meet the conditions are encouraged to apply for the pilot projects of real estate investment trusts (REITs) in the infrastructure field for water supply network projects. Local governments should plan and implement construction projects in a reasonable and orderly manner according to their financial affordability and government investment capacity to prevent local government debt risks.

(X) Promoting the Construction of Incentive Mechanisms

A sound urban water supply price formation mechanism that fully reflects the water supply cost, encourages the improvement of water supply quality, and promotes water conservation should be established. When conducting water supply cost verification and cost supervision and audit of water supply enterprises, it should be clearly stipulated that the water loss rate of the water supply network should, in principle, be calculated according to the first - class evaluation standard. If the water loss rate of the water supply network is greater than the first - class evaluation standard, the excess part shall not be included in the cost. Relying on national and local science and technology plans (special projects, funds), etc., the research and development of advanced and applicable technologies and the transformation of achievements in the field of water supply network water loss control should be supported. Local governments should further study and formulate incentive policies to reward and support water supply network water loss control projects with remarkable results.

(XI) Promoting the Contract Water - saving Model

The contract water - saving management model is encouraged to be used in water supply network water loss control projects. Water supply enterprises and water - saving service institutions should sign water - saving service contracts to clarify indicators such as the amount of water saved or the reduction of the water loss rate, and agree on the project implementation content and commercial return models. Water - saving service institutions and water supply enterprises are encouraged to develop new contract water - saving management models on the basis of water - saving effect guarantee type, water - use cost trusteeship type, and water - saving benefit sharing type. The development of the third - party service market should be promoted, and preferential policies for taxes and credit for enterprises engaged in water loss control should be improved to support the control of water loss in water supply networks through the contract water - saving business model.

The National Development and Reform Commission, together with the Ministry of Housing and Urban - Rural Development, will select a number of cities and counties with high enthusiasm, good demonstration effects, and expected good results to carry out pilot projects for the control of water loss in public water supply networks, implement the control projects, and summarize and promote typical experiences. The pilot cities and counties should formulate implementation plans for the control of water loss in public water supply networks, clarify the goals, tasks, project lists, and schedules. The central budget funds will provide appropriate support for the water loss control projects in the pilot areas.

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