Abstract: This paper reviews the recent achievements in the study of water resources allocation, discussing the characteristics of water resources allocation in China and its relationships with Integrated Water Resources Management (IWRM) advocated by the United Nations, emphasizing the importance of IWRM in the Yangtze Basin for the entire Chinese society. The water resources allocation in China is consistent with IWRM. The IWRM in the Yangtze drainage basin is a scientific issue with multi-disciplinary characteristics. The IWRM at the basin level is a fundamental basis for water resource allocation at national level and at economic sector level. Priorities should be given to entire hydrological system, so as to firstly optimize the water resource utilization and management at basin level. As a basis for water allocation at basin level, the environmental water requirement is an important issue and should receive much attention. Under the priority principle, the administration in each province in the basin and water-users may find the common guild-lines, goals and detailed measures through discussions and negotiations, so that each party can reach its own interests without causing any harm to other parties. To follow the principle of “the integration of river basin management with provincial management”, as stated in “the Water Laws”, is a key point in the future for the IWRM. The Yangtze Law, which is to be established should provide detailed legal articles for implementing IWRM. The institutional reforms are necessary both for the river basin commission and for the provincial administrations, in order to create a favorable environment for implementing IWRM. To enforce the public participation is an important challenge in China and requires extensive studies.

Key words: water resources allocation, integrated water resources management, the Yangtze Basin, Water Laws, the Yangtze River Laws