Groundwater resources play a decisive role in the nation's water resources. China has an abundant reserve of groundwater with a vast distribution, good quality, free of pollutants, easily re-adjustable and in convenient supply. Cities in the north of China and arid and semi-arid areas mostly use groundwater as their water supply.

China has 870 billion cubic meters of renewable freshwater -- 290 cubic meters of which is exploited annually, and 20 billion cubic meters of slightly salty water -- 13 billion of which is exploited per annum. Currently, the three major types for exploitation are hole water, which has the vastest distribution, largest reserve and most uses; then karst water; and crevice water.

Judging from the present conditions, groundwater use accounts for 16 percent of the total water utilization. China's groundwater exploitation is 102.9 billion cubic meters, where North China is listed as the highest, making up 52 percent of the country's total. Southern China also has an abundant reserve. Water usage in the northeast is quite small but with the potential for further development.