Parched China to slash water consumption by 60%

As rivers run dry and fields turn to dust, China has announced dramatic plans to cut water use by industry and agriculture.

Water resources minister Chen Lei said it would cut the amount of water needed to produce each dollar of GDP by 60% by 2020. With the economy on course to grow by 60% by then, that effectively means it wants to consume no more water then than today.

The announcement suggests that the government has finally decided that it cannot rely on "supply-side" solutions to water shortages, like the $60-billion south-north water transfer scheme, which is aimed at watering the arid north with water from the giant Yangtze river in the south.

It comes after China's worst drought in half a century, and increased water shortages caused by industrial pollution that makes river water unfit for drinking, even after treatment.

 Read the World Watch Institute's special report on China.