China is a country that lacks water resources, especially in the northeastern area. Wasted water and water pollution aggravate this water shortage. Since water resource distribution is imbalanced in northeastern China, many plans to allocate and transfer water have been advanced. However, the water is realloted only inareas with shortages of water resources. Therefore it cannot be believed to be alongterm strategy. There are great potentials for water utilization in northeastern China, if the plans adjusted to the agricultural structure, and can overcome the problems of wasted water and the water pollution. In a word, the water shortage problem in northeastern China should not be underestimated, but so far, over quite long period, no natural limit has been reached. Now the problem rests mainly in the cost and the profits and if the market is fully developed, the water shortage problem can be diminished greatly.