With two of the world’s longest rivers (the Yangtze and the Yellow River), China has water reserves of 2.7 trillion cubic meters, to become the fifth largest country in terms of water reserves. But China has a very acute and severe water supply deficit. Atleast 400 of China’s 670 cities suffer from water shortages; of which 110 suffer from severe shortages. It is estimated that these cities alone have an annual water deficit of 6 bln cubic meters, largely due to the pathetic condition of China’s water supply infrastructure. Numerous pipelines and distribution networks are old and weak, and many made of iron are suffering from severe corrosion problems. According to the Ministry of Housing and Urban/Rural Construction, about 25% of water pipes and facilities in urban areas leak, resulting in loss of 400 mln cubic meters every year. Compounding the problem is the uneven distribution of China’s water reserves that are 80% concentrated in the South. The densely populated North of China is dry. The country also faces widespread pollution of its rivers and lakes- an estimated 40% of the river basins of seven major rivers are polluted. Hence, water supply has been identified as a key issue by the Chinese government. In 2006 the Chinese government issued the ‘City Water Supply Pipeline Renovation Plan’ to rationalize the country’s urban pipeline structure, improve water distribution capability, extend public water supply service scope, and increase by 5% the population with access to tap water. According to the plan, priority will be placed on pipelines that had been used for over 50 years and ageing pipelines in old cities with serious leakage ratios. The consumption of polymers in the water supply segment almost tripled between 2002 and 2007. Over 1.1 mln tons of polymers were used in 2007 in this application. uPVC accounted for roughly 70% of the volume, but PE80 and PE100 are exhibiting faster growth. Market models developed for this segment by AMI Consulting predict a total polymer demand of 1.8 mln tons by 2013. AMI has forecast the demand of pipes for water supply will reach 1.8 mln tons by 2013, growing at about 11-12 % until 2013 in China. In 2009, China is expected to consume 4.5 mln tons of plastic pipe for all applications. Water supply pipes would be about 1.25 mln tons while pipes for plumbing & hot water would be closer to half mln tons.