Circle of Blue has an absolutely fantastic write-up of China's looming water problems.
"Over the last decade alone, 70 million new jobs emerged from an economy that this year...Yet, like a tectonic fault line, underlying China's new standing in the world is an increasingly fierce competition between energy and water that threatens to upend China's progress. Simply put, according to Chinese authorities and government reports, China's demand for energy, particularly for coal, is outpacing its freshwater supply."
The outstanding article summarizes the trends causing China to run dry on water, and its options for balancing supply with demand. Be sure to carve out 15 minutes to read this article for a better understanding of what happens when water supplies and economics collide.