China, facing severe water shortage, has finalised a new five-year plan that aims to reduce water consumption by 2010.

Under the new water conservation plan for the 2006-2010 period, China aims to reduce water usage by 69 billion cubic meters by 2010.

The plan, mapped out by the National Development and Reform Commission and the Ministries of Water Resources and Construction, says China would try to improve efficiency of water conservation by popularising the use of water-saving facilities and technologies in agriculture, industry and everyday life.

With the largest population in the world of 1.3 billion, China is facing water shortages as per capita water resources are 2,200 cubic meters, only 31 per cent of the world's average and ranking the 110th among 149 Countries.

Currently, about 400 out of the 660 Chinese cities lack water and 136 have reported severe water shortages. Instead of exploring water resources, China has begun to switch its focus to conservation, protection and proper distribution of water to ease water shortages and a possible water crisis amid its high economic growth.

In Beijing, a water conservation campaign has helped the city save 100 million cubic meters of water per year, enough for 10,000 three-member families for four years, but well below the amount required for long-term sustainability.