Abstract:This paper summarizes the typical experience of water investment and financing reform in Yantai Municipality since the 14th Five-Year Plan period. It analyzes the difficulties and problems in the reform from the perspectives of benefit characteristics of water projects, financial subsidy policies and water price reform. Reform measures are proposed including strengthening government investment guidance, introducing social capital, accelerating systematic reform and innovation, and endowing platform companies with stronger overall resource allocation capacity, so as to provide reference for promoting water investment and financing reform and modern water grid construction.