Water budget management represents an important exploratory innovation in building a systematic water-saving policy framework. Pilot areas within the Taihu Lake Basin have actively carried out water budget initiatives based on local water resource conditions and administrative experience. This paper reviews the pilot implementation progress

detailing developments in governance framework building

determination of management levels and targets

configuration of management cycles and processes

baseline quota formulation

surplus water market-based trading

and information system support. It further identifies key challenges currently facing water budget implementation in the region. Corresponding policy recommendations are proposed

including improving legal and regulatory systems

steadily advancing regional and sectoral pilot programs

gradually achieving full user coverage

enhancing budget accounting accuracy

and fostering the development of water budget trading markets. These insights aim to inform the promotion of water budget management in water-rich regions of Southern China.