[Mainland China] Suqian-Dongguan Reclaimed Water Pilot Selected as a National Typical Case: The "Second Water Source" Business Model Proves Viable

Introduction: The reclaimed water utilization allocation pilot cases of Suqian, Jiangsu and Dongguan, Guangdong were both recently selected as national typical cases. Suqian has built a "1+4+N" region-wide allocation system, completed a 115 km cross-regional reclaimed water main pipeline network, with the total value of reclaimed water ecological products in the 2025年 central urban area reaching 12.83亿 yuan, and pioneered a tailwater diversion quota trading mechanism; Dongguan, using a "distributed allocation + water rights trading" model, has deployed 9 reclaimed water systems around 24 key users, achieving point-to-point direct supply from "reclaimed water plants to major water users."

Suqian Sample: Turning Reclaimed Water into "Accountable and Tradable" Ecological Assets

As a national pilot city for reclaimed water utilization allocation, Suqian positions reclaimed water as a stable and reliable urban "second water source" and incorporates it into unified region-wide water resource allocation. The so-called "1+4+N" means building 1 cross-regional allocation main pipelines of 115 km, coordinating the four major utilization sectors of agriculture, industry, domestic use, and ecology, with primary allocation through upgrading wastewater treatment plants or nearby reclaimed water plants, combined with secondary allocation extended through tailwater diversion projects, to precisely serve N diverse users.

At the institutional level, Suqian has established a "6+6" policy and technical system for reclaimed water, issuing 6 technical guidelines including the "Specification for Measurement Management of Reclaimed Water Utilization Allocation" and 6 policy documents including the "Incentive Measures for Reclaimed Water Utilization in the Central Urban Area of Suqian," covering key aspects such as implementation plans, assessment methods, price guidance, water quality requirements, and incentive measures. At the digital intelligence level, the city has built a Digital Twin reclaimed water utilization allocation system, achieving dynamic monitoring and intelligent regulation of reclaimed water production, transmission and distribution, and utilization through a smart cockpit, GIS one-map, and alarm management modules.

Most groundbreaking is its value realization path: Suqian has established a reclaimed water ecological product value accounting system oriented toward "emission reduction as the priority, water conservation as the foundation, and ecological stacking," and according to accounting, the total value of reclaimed water ecological products in the 2025年 central urban area reaches 12.83亿 yuan, of which the value of pollution reduction accounts for more than 70%. On this basis, Suqian has established a tailwater diversion quota trading mechanism—scientifically verifying the tailwater diversion quotas of wastewater treatment plants in each region, generating surplus quotas through expanded reclaimed water utilization that can be sold to regions whose actual diversion volume exceeds the standard, directly converting "using more reclaimed water" into economic returns.

Dongguan Experience: Distributed Allocation + Water Rights Trading, Direct Supply to High Water-Consuming Enterprises

Unlike Suqian's "one network," Dongguan has chosen a "distributed" approach. Dongguan's per capita local water resource availability is less than one-eighth of the provincial average, with more than 90% of the city's water supply dependent on the Dongjiang River, resulting in a single water source and prominent supply-demand conflicts. In the pilot, Dongguan followed a promotion model of "1 top-level plans + 2 key demonstrations + 3 typical sectors + 1 supporting documents" to build a reclaimed water utilization allocation system with point-to-point direct connections between "water sources and water users."

In terms of specific practices, Dongguan first conducted a citywide survey of potential reclaimed water users, identifying potential users in ecological water replenishment, urban miscellaneous use, and high water-consuming industrial sectors such as textiles, printing and dyeing, power generation, and chemicals, focusing on selecting 24 eligible water intake users, relying on surrounding wastewater treatment plants to divide into 9 reclaimed water systems, and studying pipeline routes, advanced treatment processes, design influent and effluent water quality, pump station scale, project investment, and water price calculations one by one, forming a zoned, categorized, quality-differentiated, and quantitative allocation list, and establishing a "reclaimed water plant + major water user" direct supply model.

Supporting policies are equally critical: Dongguan has issued the "Measures for the Management of Reclaimed Water Utilization in Dongguan," clarifying the main industries for reclaimed water utilization and requirements for investment and financing, construction, operation, incentives, and supervision; in water intake permit approval and water use plan preparation, the feasibility of utilizing reclaimed water is a key review item, and for eligible users, their conventional water source use plans are correspondingly reduced, forcing enterprises to switch to reclaimed water from the source. At the same time, wastewater treatment facility operating units are required to report reclaimed water quality quarterly, using transparent data to dispel user concerns.

Industry Signals Behind the National Typical Cases

The selection of the two pilot cities as national typical cases marks that reclaimed water utilization is moving from "engineering construction" into the deep-water zone of "institutional operation." For the industry, at least three points deserve attention:

• Diversified business models — Mechanisms such as tailwater diversion quota trading, water rights trading, and ecological product value accounting have enabled reclaimed water projects to shift from reliance on fiscal investment to monetization of diversified value, significantly enhancing project bankability;
• Industrialized user structure — Both cities have taken high water-consuming industrial enterprises as core users; industries such as printing and dyeing, chemicals, and power generation will become the largest buyers of reclaimed water reuse equipment and services;
• Digital intelligence as standard — Digital Twin, GIS one-map, and smart water intake systems have all been implemented in both locations, and smart operation capabilities are becoming a bidding threshold for reclaimed water projects.

As pilot experience is scaled up, more cities are expected to follow suit in establishing localized reclaimed water pricing mechanisms and trading systems, and the role of wastewater treatment plants will shift from "end-of-pipe treatment facilities" to "producers of the city's second water source."

Conclusion

Suqian has proven that reclaimed water can be "priced," and Dongguan has proven that reclaimed water can be "directly supplied." When ecological value can be accounted for, water use quotas can be traded, and water quality data is sufficiently transparent, reclaimed water transforms from a policy task into a sustainable business. This is precisely the key step in the maturation of China's Reclaimed Water Reuse industry.

About TIANYI TECH Co., Ltd.: TIANYI TECH Co., Ltd. (TIANYI LIMITED) focuses on the fields of wastewater treatment, Reclaimed Water Reuse, and Water Environment Governance, providing full-chain services including process design, equipment integration, engineering general contracting, and smart operation to municipal and industrial clients. The company continuously tracks global water treatment policies, technologies, and market dynamics, and is committed to helping clients achieve efficient utilization and sustainable management of water resources through reliable solutions. For more information, please visit the company website at www.tianyitech.hk.

Source: The Paper, Water-Saving China Network, public information from the Suqian and Dongguan municipal governments (2026年10月)