The rare deposition of water resources conflicts with its limitless demand.This determined the existence of the water fights transaction system.The implementation of the water fights transaction system requires clarifying the definition of water re- source right above all distinctly.At present,it is a kind of common right system arrangement which needs the Chinese government to dispose of water resources.Though a series of management sys- tems guaranteed the government’s supply of water resource,it hindered the development of the water market seriously and caused the utilization of water resources to stay in the inefficient or low efficient state for a long time.Thus,we should change the government’s leading role in the resource distribution and really rely on the market to carry on the water fights trade and transac- tion.In this way,the water rights could become a kind of private property fight relatively,and circulate freely in the market.As a result of this,we should overcome the defects of common fight, make its external performance internalized maximally and achieve the optimized water resource disposition and use it more effec- tively. The rare deposition of water resources conflicts with its limitless demand.This determined the existence of the water fights transaction system. The implementation of the water fights transaction system requires clarifying the definition of water re- source above all distinctly. At present, it is a kind of common right system arrangement which needs the Chinese government to dispose of water resources. Hough a series of management sys- tems guaranteed the government’s supply of water resource, it hindered the development of the water market seriously and caused the utilization of water resources to stay in the inefficient or low efficient state for a long time.Thus, we should change the government’s leading role in the resource distribution and really rely on the market to carry on the water fights trade and transac- tion. In this way, the water rights could become a kind of private property fight relatively, and circulate freely in the market. As a result of this, we should overcome the d efects of common fight, make its external performance internalized maximally and achieve the optimized water resource disposition and use it more effec tively.