Beijing is planning to rebuild the Guanting Reservoir into its second largest water source, after the Miyun Reservoir.
Guanting Reservoir's storing capacity will reach 4.16 billion cubic meters when the project is completed.
It is one of Beijing's 26 measures to solve the problem of water shortages this year.
The Chinese capital will use recycled water and river water to irrigate crops and trees. Rice field acreage will be reduced to grow other crops that consume less water.
It is estimated that these measures will save 38 million cubic meters of water this year.
The municipal government will also deliver 2.5 million water-saving faucets to local households and close illegal car wash sites and bathing centers that waste water.
The city has set the water consumption limit between five and eight cubic meters per month for each household, and higher price will be charged for extra consumption.
Beijing used to be rich in water resources, but now with a population of 12.8 million there is only 300 cubic meters per person, or about 3 percent of the world's average.
Last year, for the first time water reserves in the city's 16 large reservoirs did not meet demand. Underground water levels also dropped 2.35 meters below the 1998 level, the worst level in the 1990s, statistics showed.
(People's Daily 09/21/2000)