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Intensifying competition for water induces the growth of water markets in several countries for sharing water between rural communities and cities. While there is a growing recognition that adoption of market mechanisms in environmental governance relies on the state and different institutional arrangements, much less is known about how the interconnections among the state, market-tools, and the community work in practice. In China's distinctive political system, the central government has adopted a 'Two-Hands' approach () to water gover
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