With an estimated investment of 8 billion yuan (US$970 million), by 2005, 10 million people in Guangdong's Pearl River delta will be able to drink tap water directly from the pipe, according to the goal set by the province's 10th Five-Year Plan (2001-05).

Coveting the large market, more than 20 companies have been involved in the fledgling business.

Zhou Damin, vice-director of the provincial food quality supervision and inspection station, pointed out that since there are no requirements for entry to this market, some unqualified companies have also shown a presence in the market.

Some companies quoted prices of less than 1,800 yuan (US$220) per household for installation, while industry insiders said a reasonable fee should be at least 3,000 yuan (US$360) to make sure the water reaches a quality level in line with regulations of the United States Environment Protection Agency.

"I am afraid that this developing industry may be ruined by galloping competition using low prices," said Wu Weisi, manager of the Guangzhou Lvquan Water Technology Development Company.

"There are still no authorized drinking water standards so far," said Luo Dongpu, manager of the Guangzhou Water Cup Drinking Water Supply Engineering Company, under the Chinese Academy of Sciences.

China now has several water regulations issued by different departments with different indices but lacks a uniformed national standard.

The Guangzhou Geochemistry Institute and the water cup company has drafted a local regulation that was submitted to the provincial development and planning committee.

"But the committee has not approved or issued any other regulations," Luo said.

The company is responsible for the demonstration project of the new water supply system and has passed tests by a group of experts organized by the provincial government.

Luo appealed to the government to frame timely policies to foster the healthy development of the industry.

Launched in 1998, the project to provide a piped supply of drinking water has built new systems in five cities in Guangdong Province, including Guangzhou, Dongguan and Zhuhai.

The new piped water systems will be combined with other high-standard water suppliers, including Xinfengjiang Reservoir, to form a new urban water supply network that divides quality drinking water and non-drinking water.

(China Daily January 12, 2002)