We didn't hear much in China about the massive water transfer scheme, although we did talk about it in class. In short, there are three man-made rivers being constructed from the Yangtze in the south (water surplus), to various locations in the north that have water deficits.
Xinhua has an article indicating that two tunnels under the Yellow River are now under construction as a part of this project. Another article indicates that the Three Gorges reservoir has just been lowered in anticipation of flooding. I find it amazing the number of water resource-related articles coming out of Xinhua. Here's another one.
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they probably lowered the level because of this http://www.chinadaily.com.cn/china/2007-07/08/content_912586.htm
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