1. China Institute of Water Resources and Hydropower Research, Beijing 100044, China;
2. Central China Economic Development Research Center, Nanchang University, Nanchang 330047, China
Management of water arises from the water cycle and water development & use. The interactions between water cycle and water development & use define the three management areas in water:resources management,service regulation and environment management.The resources management aims to avoid the "tragedy of the commons" in water resources;the service regulation is for the public benefits and control of natural monopoly; the environment manage-ment is to overcome the externality.In managing water,two types of instruments are employed:the entry restrictions and economic incentives.While assessing the application of these management tools, effectiveness, efficiency,justice and adaptability are four criteria.