The State Council, China's Cabinet, will soon announce a proposal to tighten management of water resources, the 21st Century Business Herald reported Friday, citing an official with the Ministry of Water Resources.

The government will work to control water consumption and efficiency of water usage, as well as the total pollution capacity of the country's major rivers and lakes, Sun Xuetao, director-general of the ministry's department of water resources management, said at a water forum held on Wednesday.

By 2015, China's annual water consumption will be limited to below 620 billion cubic meters, Sun said, adding that the country will reduce its industrial water usage per 10,000 yuan ($1,500) industrial added value by more than 30 percent and increase the effective utilization coefficient of irrigation water to more than 52 percent. Rivers and lakes that meet the set water quality criteria will account for more than 60 percent of the total, from the current 41 percent, Sun said.

US companies still want to do business Related readings:  China pledges water will still flow  Water supply resumes for 800,000 in central China city  Water demands true respect  Water transfer system to end Xinjiang drought

Currently, China faces an annual water shortage of up to 40 billion cubic meters, the newspaper said. Nearly two-thirds of cities are facing some sort of water shortage, and about 230 million mu (15.3 million hectares) of farmland are plagued by drought each year.

Sun said the extensive economic growth pattern and rising demand for water resources due to the rapid economic and social development have caused the current water crisis.

Sun said water demand will rise further as cities become even larger during China's urbanization process.

A national water resources information system aimed at helping improve water resources management will be completed in the next two years, Sun added.