[Mainland China] Shizuishan, Ningxia: Reclaimed Water Utilization Rate Jumps from 23.7% to 61.1% in Three Years; Full Industrial Substitution Resolves a Resource-Based City's Water Crisis

Introduction

Shizuishan's reclaimed water utilization and allocation pilot program was selected as one of the 14 national typical cases, and is the only one in Ningxia. During the three-year pilot, the city's reclaimed water use climbed from 9.11 million m³ to 32.28 million m³, the utilization rate jumped from 23.7% to 61.1%, total pipeline network length grew from 64 km to 134 km, and cumulative investment reached about RMB 1.473 billion, with 22 key projects implemented. The city has formed an allocation pattern of "reclaimed water substituting conventional sources for industrial production, replacing Yellow River water for ecological replenishment, and replacing premium water for municipal landscaping," offering a "Shizuishan solution" for resource-based old industrial cities seeking to break through water resource bottlenecks.

I. The Water-Scarcity Challenge: Per Capita Water Resources at Only One-Fifth of the National Average

Shizuishan is a typical resource-based old industrial city and one of the most severely water-scarce areas in Ningxia and indeed the country. Its per capita water resources are far below the national average, and industrial water use has long depended on Yellow River water quotas. The water resource bottleneck was once a core constraint on the city's development.

In June 2022, Shizuishan was designated by the MWR and five other ministries as a national pilot city for reclaimed water utilization and allocation. Grounded in its water-scarcity reality, the city has deeply advanced wastewater resource recovery, turning treated effluent into a high-quality "second water source" and forming three mature allocation patterns:

• Industrial production substituting conventional sources — high-water-consumption industries such as thermal power, steel, and chemicals have fully adopted reclaimed water.
• Ecological replenishment substituting Yellow River water — reclaimed water is used for ecological replenishment of rivers, lakes, and wetlands, easing pressure on Yellow River water abstraction.
• Municipal landscaping substituting premium water — road washing, landscape irrigation, and scenic water use have fully switched to reclaimed water.

II. Connecting Production and Use: Resolving the Production-Use Separation Pain Point with a 134 km Pipeline Network

During the pilot period, Shizuishan invested about RMB 1.473 billion in total, implemented 22 key reclaimed water projects, built 70 km of new reclaimed water pipelines, and extended total network length from 64 km to 134 km, comprehensively filling the gaps in production-use integration.

In particular, to address the prominent production-use separation problem in the Huinong area, the city built new large-diameter trunk pipelines, connecting the No. 2 wastewater treatment plant with more than 10 key enterprises including Ningxia Jianlong Special Steel and Guoneng Shizuishan No. 1 Power.

Guoneng Shizuishan No. 1 Power Generation Co., Ltd. invested more than RMB 54 million to upgrade its reclaimed water treatment system, with reclaimed water replacing conventional sources throughout the plant and being widely used in core processes such as unit circulating cooling and production makeup water, achieving full replacement of industrial water. This case has become a benchmark demonstration of reclaimed water entering the workshop and core processes.

III. Market-Based Operations: Customized Supply, 3.61 Million Tonnes Treated Annually with RMB 20 Million in Annual Output

Inside the production workshop of Ningxia Haixin Reclaimed Water Development and Utilization Co., Ltd. in the Dawukou District, biological aerated filters (BAF), fiber filtration, ultrafiltration, and reverse osmosis equipment run efficiently, with reclaimed water from Shizuishan No. 1 Wastewater Treatment Plant steadily conveyed through sealed pipelines.

"We can customize water supply solutions based on customer needs, steadily supplying production water to nearby enterprises such as Guodian Dawukou Thermal Power, Ningxia Haili Electronics, and BASF Shanshan Battery Materials, significantly reducing their water costs," said Guo Zhongcheng, director of the company's general management department. The company currently treats and utilizes 3.61 million tonnes of reclaimed water annually, with annual output of about RMB 20 million.

In addition, Shizuishan No. 1 Middle School adopted an innovative contracted water-saving model, bringing in private capital to build a wastewater treatment facility with a daily capacity of 100 m³. After the campus domestic wastewater is purified to meet standards, it is recycled for toilet flushing in teaching buildings and maintenance of 14,000 m² of landscaping, saving 7,860 m³ of water and RMB 28,000 in water fees annually.

IV. Policy Dividends: Nearly RMB 80 Million in Subsidies, Water Resource Tax Exemption Saving Over RMB 20 Million Annually

Shizuishan has fully leveraged policy incentives in promoting reclaimed water:

• Cumulative reclaimed water utilization subsidies of nearly RMB 80 million have been disbursed.
• Reclaimed water is exempt from the water resource tax, reducing the burden on enterprises by over RMB 20 million annually.
• A "government-guided, market-driven, multi-party coordinated" investment and financing system has been established to leverage private capital participation.

The combined use of these policy tools has effectively lowered the economic threshold for enterprises to use reclaimed water and accelerated the shift from policy-driven to market-driven adoption.

V. Industry Takeaways: A Replicable Path for Full Substitution with Reclaimed Water in Resource-Based Cities

The Shizuishan case offers a replicable path for similar resource-based and water-scarce cities to promote reclaimed water:

• Pipeline first — prioritize filling gaps in distribution networks to break through the production-use separation bottleneck.
• Start with industry — use high-water-consumption industrial enterprises as the entry point to achieve a full substitution demonstration effect.
• Policy support — reduce initial costs through subsidies, tax exemptions, and other incentives.
• Market activation — bring in private capital for reclaimed water plant construction and operation to form a sustainable business model.

This article is compiled from China News Service reports in August 2026, MWR typical-case notices, and publicly available industry information.

About TIANYI TECH Co., Ltd. (TIANYI LIMITED)

TIANYI TECH Co., Ltd. specializes in wastewater treatment and water reuse, and is committed to providing municipal and industrial customers with efficient, low-carbon, and sustainable water treatment solutions. The company's business spans wastewater treatment engineering design, water reuse system construction, membrane separation technology applications, and smart water operation services, helping customers achieve water resource recycling as well as energy-saving and emission-reduction goals.