Although accounting for about 20% of the global population, the People's Republic of China (PRC) is endowed with only 7% of the world's water resources. The country faces severe water scarcity, high levels of urbanization and population growth, and climate change. For the PRC's continuing development, it must protect and develop its freshwater resources. This publication provides recommended policy initiatives to ensure the PRC's 13th Five-Year Plan (2016–2020) contributes to significant improvements in national water security, particularly in extreme water-scarce provinces. Some actions proposed for increased water security are better water resources management, more cross-sector planning, deeper reform of the water pricing system, and creation of water markets.