Alshaa League in North China's Inner Mongolia autonomous region and Garze county in Southwest Sichuan province have signed a Framework Agreement on Cross-Provincial Water Rights Trading in the Yellow River Basin.

Under the deal, Garze will transfer a total of 1.8 million cubic meters of water to Alshaa League over three years, marking the first cross-provincial water rights transaction in Inner Mongolia.

Water rights trading allows the transfer of water use entitlements across regions, river basins, industries, and users through market-based mechanisms. For Alshaa League, one of the most water-scarce regions in China, the agreement provides a crucial step toward easing water shortages that have long constrained local economic growth.

Alshaa League has sought innovative solutions in recent years to balance its limited water resources against surging industrial demand. The framework agreement sets out clear rules on water rights confirmation, trading procedures, and benefit-sharing, paving the way for a market-driven allocation system. It also offers a replicable model for similar cross-regional transactions in the Yellow River Basin.

This cooperation between Inner Mongolia and Sichuan is expected to help address uneven water distribution and supply-demand pressures in both regions. Beyond water rights, the two sides plan to deepen collaboration in ecological protection, green industries, and technological innovation, aiming to build a model of cross-provincial governance and contribute to the basin's ecological protection and high-quality development.