Economic Watch: Bottled water an unexpected bestseller from China’s mega water project

An aerial drone photo shows a water industrial park at Danjiangkou economic development zone in central China’s Hubei Province, Oct. 30, 2024. (Xinhua/Wu Zhizun)
WUHAN, Nov. 9 (Xinhua) — Ten years ago, Fang Peng understood that water in his hometown of Danjiangkou, central China’s Hubei Province, was so clean and bountiful that it was channeled hundreds of miles to quench the thirst of cities in the arid north.
But what he did not expect back then was that the generous supply of water would one day win the small city great reputation and make local bottled water a national bestseller.
Fang works at Danjiangkou Wudang Mountains Water Company, which bottles mineral water sourced from the Danjiangkou Reservoir, the starting point of the middle route of the South-to-North Water Diversion Project.
“My parents are farmers, and back then, most young people would go to the big cities for better jobs,” said 26-year-old Fang. “But now, working in the mineral water plant at home, I can earn over 6,000 yuan a month and live a decent life.”
The plant, which started operations in 2023, produces over 12 million bottles of water per month, priced at between 2 yuan and 58 yuan (28 U.S. cents to 8 U.S. dollars). Boasting good, stable water quality, the company generated more than 60 million yuan in revenue in the first half of 2024.
“The sales stats are great for a start-up, and much of the credit goes to the South-to-North Water Diversion Project,” said Chen Dongjun, the company’s general manager, adding that local beverage companies have gained more customers thanks to the rising renown of Danjiangkou as the source of clean water.
“Our sales have been especially strong in the northern regions along the diversion route,” Chen added.
This year marks the 10th anniversary of the operation of China’s South-to-North Water Diversion Project, which was initiated to address China’s regional water imbalance. Over the past decade, it has delivered more than 66 billion cubic meters of water from Danjiangkou to northern cities including Beijing, Tianjin and Zhengzhou, benefiting more than 100 million people.
A less reported bonus for Danjiangkou is its thriving water industry, now worth 14 billion yuan. In the city’s industrial park, bottled water and beverage giants such as Nongfu Spring and Beibingyang are producing at full capacity, while C’estbon Food & Beverage and beer brands like Yanjing are busy building new facilities.
Zhao Hongfu, secretary of Danjiangkou’s municipal Party committee, anticipates the city’s water industry to reach 16 billion yuan by 2025, with plans to build a complete supply chain spanning purified water, functional beverages and food processing.
The good reputation of Danjiangkou supports its industrial ambitions. On China’s e-commerce platforms, bottled water from Danjiangkou is often greeted with grateful remarks like “Thank you, Danjiangkou, for your remarkable contribution to the water diversion project.”
Yet more importantly, the city’s long-time commitment to protecting the water source has ensured the superb quality of the local water.
At the Danjiangkou water-quality safety center, walls of LED screens display live monitoring data from the reservoir’s various sources.
“We monitor every major inflow point and wastewater source to stay ahead of any potential risks,” says Shu Yi, Party chief of Danjiangkou’s development and reform bureau.
Shu said that strict regulations have been enacted to reduce pollutants, and the city has organized more than 450 volunteer groups to protect the water quality. As a result, water quality in the Danjiangkou Reservoir rarely falls below the second class on China’s five-tier quality scale for surface water.
While residents in northern China are grateful for the water supply, Fang and his peers in Danjiangkou see it as a shared benefit.
“I’d really like to say thanks to those who appreciate our water. It’s their support that helps us turn this ecological treasure into commercial opportunities,” Fang noted. ■

An aerial drone photo shows a water industrial park at Danjiangkou economic development zone in central China’s Hubei Province, Oct. 30, 2024. (Xinhua/Wu Zhizun)

The warehouse of Danjiangkou Wudang Mountains Water Company is seen in central China’s Hubei Province, Oct. 30, 2024. (Photo by Wang Shilin/Xinhua)