The European Union Water Framework Directive (EU WFD) is a unique piece of legislation, which may be of great significance to on-going reforms of the water sector in China. First and foremost it unites 27 European member states behind a common goal, which is “to achieve good chemical and ecological status” of all water bodies across the EU. Other significant characteristics of the EU WFD are that (1) it sets a clear timeframe with a number of time-bound actions for member states to achieve the goal, but leaves it to member states to achieve this goal in a decentralised process, which makes allowance for the different socio-economic conditions, (2) it defines the river basin as the management unit for water thus departing with the traditional fragmented management by administrative units and it appoints a single competent authority for water management within each river basin, thus facilitating resolution of sector conflicts, (3) it requires a financial and economic analysis of the costs of implementing the EU WFD to enable decision makers to assess whether the required improvements are affordable to government and to the population within the river basin, and (4) it requires a structured process for information and consultation with stakeholders and the public throughout the planning and implementation process. The European Union Water Framework Directive (EU WFD) is a unique piece of legislation, which may be of great significance to on-going reforms of the water sector in China. First and foremost it unites 27 European member states behind a common goal, which is “to achieve good chemical and ecological status ” of all water bodies across the EU. Other significant characteristics of the EU WFD are that (1) it sets a clear timeframe with a number of time-bound actions for member states to achieve the goal, but leaves it to member states to achieve this goal in a decentralized process, which makes allowance for the different socio-economic conditions, (2) it defines the river basin as the management unit for water so departing with the traditional fragmented management by administrative units and it appoints a single competent authority for water management within each river basin, thus facilitating resolution of sector conflicts, (3) it requires a financial and economic analysis of the co sts of implementing the EU WFD to enable decision makers to assess whether the required improvements are affordable to government and to the population within the river basin, and (4) it requires a structured process for information and consultation with stakeholders and the public throughout the planning and implementation process.