China is experiencing water shortages. Demand with water will only increase with time, especially if shale takes off. The Center for Strategic and International Studies cites a study for the International Finance Corps claiming demand in 2030 will outstrip supply by 200 bcm, this does not take into account demand for shale gas development. Half of China's water is used for agriculture. Doubtless there is room for increased efficiency.
India and China have already been introducing drip irrigation, even for rice.
Drip irrigation decreases water demand by up to 70%, while increasing productivity. China provides preferential loans and funding for this sort of irrigation improvement.
One problem, however, is water subsidies. These subsidies seem designed to help residential users. Different rates are applied to commercial and industrial users. Reduced subsides will decrease residential demand per household, but the number of urban households is bound to increase. My data is a little dated though. So I'm hopeful water tariffs have been increased to cover more of the true costs.
Forests are another problem. There have been illogical forestry programs in China. These programs plant trees unsuitable for local conditions. Sadly I'm having trouble finding a source. This makes me think their are special water subsidies for pet projects, which wouldn't be surprising.
Other solutions to China's water woes include the South-North Water Transfer Project. Even more controversial options include the diversion of the Brahmaputra and Mekong Rivers, both originate in China.
Another solution is Propane Fracturing. This uses propane instead of water as a fracturing agent. It appears, however, to be more expensive. Although the technology is proprietary and the companies developing it are keeping their cards close to their chest. In any case, increased efficiency in the agriculture sector is probably what we'll be seeing the most of.
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