Water resources have the functions as domestic water, resource water and environmental water, on the basis of which the legislative framework of water resource regulations shall be studied. Firstly, domestic water shall be deemed as property right and the legislation shall protect the realization of the fundamental human rights for use of domestic water. Secondly, with respect to resource water, an independent water resource regulatory agency shall be established; and meanwhile, the legislation shall promote the construction of water right market based on property rights and improve the utility of water resources. Thirdly, since environmental water is one of the public goods, the legislation shall create a path of privatization in implementing mechanism for realizing the use of environmental water and the franchising system provides a practical solution to privatization of environmental water.