Water shortage and water environment deterioration are becoming the bottleneck of the continuous socioeconomic growth of China in the 21st Century. Based on the development of water utilisation and the natural matter cycle rule, the authors argued that the fundamental approach to resolve the water crises and achieve the sustainable utilisation of water resource is to establish a healthy water cycle. The key strategy to establish this is advanced wastewater treatment and recycling to entire cities. The successional researches and practices of sustainable water utilisation and water environment restoration in Dalian, Shenzhen, Beijing and the north-east region were presented. These projects were the initial applications of the primary healthy water cycle theory, and indicated that the Chinese water industry gradually tends to the water environment restoration and water recycling.

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