Answer: Shanghai is located at the lower Yangtze River and Taihu Lake. The quality of its original water is greatly affected by the upper Yangtze River and Taihu basin. Despite the large amount of water flowing through Shanghai, the water is of poor quality. According to the experts, Shanghai is a pollution-induced water shortage city. How to supply Shanghai with adequate water resources to support its urban development thus becomes an important issue that Shanghai citizens, especially the water administrative department, are faced with.

    In recent years, Shanghai has made strides in its water conservation work, with each of its indexes of water conservation including its 10,000 yuan output water consumption, 10,000 yuan GDP water withdrawal quota and repeated use rate of industrial water reaching the advanced level of the nation, which constitute one it landmarks in its efforts to save water.

    Shanghai has been awarded the title of "national advanced city to save water" for three successively times by the states three ministries. In 2003, Shanghai was called by the National Ministry of Construction and the National Development and Reform Commission as among the nations first batch of water-saving cities. Shanghai has made great contributions through its water conservation work for safeguarding its economic development, relieving its stress in water use, protecting the water resources and improving the water environment.