| As the urban water industry have the characters of large demand of fund, long investment cycle, high sunk cost and scale economies, people always think it is a typical field of market failure and the supply of urban water goods should be invested by government.With the development of the new public administration around the world, the public goods of urban water is no longer invested by government now. People realize that it is necessary to distinguish the supply and production of the public goods, introduce market mechanism into the urban water industry, and carry out the policy of Privatization. Thereupon it is of great theoretical and practical significance to analyze the problem of the supplying mechanism and system innovation of urban water industry.This thesis has six chapters and the main issues include:1. The thesis describes the status and industrial character of the urban water industry in China, with the pressures of urban concentration, the enlargement of the size of their population and the lack of fiscal expenditure.2. The thesis scientifically defines the economic character of the Urban Water goods based on the study of the concept, classification, and character of public goods in China.3. The thesis points out the theoretical basis of marketization reform of urban water industry based on the analysis of the Supplying Mechanism of public goods.4. The thesis finds the international experience by reviewing the history of the Supplying Mechanism of the urban water industry in China and international comparison.5. The thesis analyzes the approach of the reform of the urban water industry's Privatization and the pattern of the Supplying Mechanism. |