Water can be redistributed through, in physical terms, water transfer projects and virtually, embodied water for the production of traded products. Here, we explore whether such water redistributions can help mitigate water stress in China. This study, for the first time to our knowledge, both compiles a full inventory for physical water transfers at a provincial level and maps virtual water flows between Chinese provinces in 2007 and 2030. Our results show that, at the national level, physical water flows because of the major water transfer projects amounted to 4.5% of national water supply, whereas virtual water flows accounted for 35% (varies between 11% and 65% at the provincial level) in 2007. Furthermore, our analysis shows that both physical and virtual water flows do not play a major role in mitigating water stress in the water-receiving regions but exacerbate water stress for the water-exporting regions of China. Future water stress in the main water-exporting provinces is likely to increase further based on our analysis of the historical trajectory of the major governing socioeconomic and technical factors and the full implementation of policy initiatives relating to water use and economic development. Improving water use efficiency is key to mitigating water stress, but the efficiency gains will be largely offset by the water demand increase caused by continued economic development. We conclude that much greater attention needs to be paid to water demand management rather than the current focus on supply-oriented management.water transfer | virtual water | regional water stress | multiregional input-output analysis

a b s t r a c tWater scarcity is a widespread problem in many parts of the world. Most previous methods of water scarcity assessment only considered water quantity, and ignored water quality. In addition, the environmental flow requirement (EFR) was commonly not explicitly considered in the assessment. In this study, we developed an approach to assess water scarcity by considering both water quantity and quality, while at the same time explicitly considering EFR. We applied this quantity-quality-EFR (QQE) approach for the Huangqihai River Basin in Inner Mongolia, China. We found that to keep the river ecosystem health at a "good" level (i.e., suitable for swimming, fishing, and aquaculture), 26% of the total blue water resources should be allocated to meet the EFR. When such a "good" level is maintained, the quantity-and qualitybased water scarcity indicators were 1.3 and 14.2, respectively; both were above the threshold of 1.0. The QQE water scarcity indicator thus can be expressed as 1.3(26%)|14.2, indicating that the basin was suffering from scarcity problems related to both water quantity and water quality for a given rate of EFR. The current water consumption has resulted in degradation of the basin's river ecosystems, and the EFR cannot be met in 3 months of a year. To reverse this situation, future policies should aim to reduce water use and pollution discharge, meet the EFR for maintaining healthy river ecosystems, and substantially improve pollution treatment.

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