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Yunnan Province is traversed by more than 600 rivers that together form six major river basins, providing huge water resources for the province as well as 24% of China’s hydropower potential. However, despite of being called ‘Asia’s water tower’, Yunnan frequently faces severe droughts, putting pressure on local communities and state actors alike. Due to the uneven distribution of water across the province, and the fact that 80% of its annual rainfall occurs between May and October, disparities in local water provision are significant.
In order to improve water provision, in recent years, China’s central government has been pouring huge investments into water resource projects nationwide. Drawing on theories of policy implementation, the paper analyzes water management strategies of different localities in Yunnan, including the ways in which local governments have been trying to attract central state investment. Drawing on field research conducted in four counties, the paper provides findings on local state agency and state capacity in the increasingly important policy field of water governance. A comparison of these localities shows that instead of easing the burden of water scarce regions, China’s new focus on water governance reinforces existing social and economic disparities.