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The rapid decline in water reserves in China's largest city is becoming an increasing concern for local environmentalists and officials.

Over the last two decades, Shanghai's water area has been reduced by 2.7 per cent from 11.1 per cent of the city's total territory of 6,340.5 square kilometres. The decline is due to rapid urbanization.

But the city is fighting back by creating man-made lakes and reducing pollution, in addition to using other methods.

"We are reclaiming water areas from the land to make up for the necessary environmental demand," said Wang Songnian, deputy director of the Shanghai Water Authority.

By 2020, the original area of the city's water reserves is expected to be achieved by digging eight artificial lakes in several districts and expanding the courses of major rivers running throughout the city.

The authority has also introduced regulations to encourage real estate developers, who are making water features a big selling point, to create ponds in their residential complexes.

Waterways play an important role in regulating the weather, draining rain and even enriching people's lives, according to the official.

Now, Shanghai has about 23,790 waterways that run a total length of 21,000 kilometres, excluding the Yangtze River.

Shanghai is regarded as a metropolis on water. However, it costs the government a huge amount of money in trying to rectify the water situation.

The ongoing rehabilitation of Suzhou Creek, for instance, will cost more than 10 billion yuan (US$1.21 billion) by 2005.

According to statistics collected from the city's 194 water monitoring stations, 94 per cent of the water running throughout the city is inferior to Grade III quality and 80 per cent falls into the Grade V category, according to the national standard.

Grade IV water cannot be consumed.

To stop pollutants from being emptied directly into the rivers, the city is trying to send all of its sewage to treatment plants.

The city has vowed to forge "an oriental waterpolis" by spending 50 billion yuan (US$6.05 billion) to treat its waterways.

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