Cross-regional water resource allocation projects are often constrained by large-scale investments

long construction periods

and high water supply costs

resulting in significant financial pressure during both construction and operation.Innovating financing mechanisms and expanding financing channels are essential to implementing the dual-track approach of giving full play to the roles of both government and market in water governance. Taking the Changhua River Water Resources Allocation Project in Hainan Province as a case study

this paper estimates both the current water price and the target tariff based on the “allowable cost plus reasonable return” principle

and analyzes the resulting funding gap. It further'explores financing solutions involving fiscal subsidies and strategic resource allocation to ensure the projects sustainable operation. Based on the findings

the paper proposes targeted recommendations for water price adjustment and resource reallocation to support long-term financial viability.