The imbalance between the supply and demand of water resources in the Taihu Lake Basin has gradually emergedwith the social and economic development. This paper reviewed the exploratory attempts in the field of water use rights reform carried out by all localities inthe Taihu Lake basin

analyzed the current situation of water use rights clarification

trading

platform building and measurement supervision in the basin

and studied the trading potential and spatial distribution of demand for water rights in the Taihu Lake basin

covering trading of regional water use rights and water collection and consumption rights

irrigation water users' trading of water rightsas well as innovative trading of water rights. Based on the potential analysis while taking into account the existing problems

suggestions were put forward for advancing the reform of water use rights in the Taihu Lake Basin.