StingRoy
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Agriculture is the main contributor to water usage.
Industry get more bucks out of water use than agriculture.
Dont know how it is done in China, but primarily the agricultural and industrial water usage comes from ground water bodies (like rivers and lakes) whereas drinking and water for urban usage can be heavily sourced from ground water table. Heavy usage of ground water table can cause the land to sink. This is a problem not just unique to Shanghai, but many a cities around the world who heavily rely on ground water.