Water supply pricing in water conservancy projects is a critical lever for promoting water conservation

ensuring the sustainable operation of hydraulic infrastructure

and enhancing the role of market mechanisms in resource allocation. At the end of 2022

the National Development and Reform Commission(NDRC) revised and issued the Administrative Measures for Water Supply Pricing in Water Conservancy Projects and the Cost Supervision and Audit Measures for Water Supply Pricing in Water Conservancy Projects. It also launched pilot programs to conduct cost supervision and price setting for selected central-level water conservancy

providing practical models for deepening reforms in water pricing. This paper elaborates on the significance of improving water price formation mechanism

analyzes key cost components based on cost audits and price-setting practices

and puts forward targeted recommendations for promoting reforms in water supply pricing for water conservancy projects. The study aims to offer both theoretical insights and practical guidance to support the development of a sound

market-oriented pricing mechanism in the water sector.