Phase II Water Treatment and Regeneration Plant. Pudong. China

Compensation
Water Recycling and Reuse
Overview

In a world facing an unprecedented climate crisis and growing water insecurity, the Shanghai Phase II Water Supply Project emerges as a visionary response to the global water challenge. In a context where more than 3 billion people live under severe water stress and Asian coastal cities face extreme pressures on their resources, this initiative represents a concrete commitment to resilience and urban sustainability. Conceived on Plot A‑1 of Chuansha New Town, within the Pudong New Area, the project expands the water infrastructure of the Shanghai International Tourism Resort to ensure an efficient and circular water supply for China’s most iconic theme park.

With an estimated investment of 12 billion yuan, the system not only supplies water but also transforms the way it is managed in high‑demand environments. Through a diversified supply model that combines the municipal network, reuse of water from Wishing Star Lake, and rainwater harvesting, the project integrates cutting‑edge technology at every stage of the cycle: “aerated biological filter + high‑efficiency sand sedimentation + ultrafiltration + UV disinfection.” This treatment chain guarantees quality parameters that exceed national standards (COD ≤ 20 mg/L, BOD₅ ≤ 6 mg/L), producing water suitable for multiple uses within the park.

More than an engineering work, this plant redefines the relationship between tourism, technology, and sustainability. It represents a paradigm shift: every cubic meter treated ensures the annual consumption of hundreds of visitors and replaces extraction from natural sources. The project fully aligns with the global Water Positive, meeting the principles of additionality, traceability, and intentionality of the VWBA framework, guaranteeing real volumetric benefits in a highly pressured urban basin. Strategic actors include Pudong local authorities,  environmental design and operations teams, and certifying entities that will validate water quality and performance. In essence, Shanghai Phase II not only expands capacity but inaugurates a new era of responsible urban water management, inspiring other destinations to follow a model where every drop counts and every action leaves a tangible positive impact.

Located in the Pudong New Area, the Shanghai Phase II Water Supply Project consolidates an integrated solution to supply and regenerate water within China’s most visited theme park. This system combines advanced treatment technologies, aerated biological filtration, high‑efficiency sedimentation, ultrafiltration, and UV disinfection, with intelligent digital control, allowing the transformation of over 50,000 m³ of water per day into a high‑quality reusable resource for irrigation, cleaning, lake maintenance, and recreational uses. Each liter treated replaces the extraction of freshwater from external sources, generating measurable water savings and immediate environmental returns.

The benefits are tangible: significant reductions in emissions associated with pumping and water transport, continuous regeneration of Wishing Star Lake, and decreased use of polluting chemical inputs in park operations. The project is made possible through collaboration between the Pudong government, Disney’s technical team, and leading environmental engineering firms, ensuring full system traceability under VWBA and Water Positive standards.

This model is replicable across parks, resorts, and urban zones facing growing water stress. Its success demonstrates that operational efficiency and sustainability can coexist harmoniously: tourism, entertainment, and real estate companies adopting similar solutions not only ensure ESG compliance but strengthen their reputation, access regulatory incentives, and position themselves as pioneers in the transition toward a circular water economy. Acting now means transforming the management of the 21st century’s most critical resource into a real and measurable competitive advantage.

The project adopts a comprehensive approach to the park’s operational and environmental complexity, implementing:

The technical implementation is structured into three operational stages. The first phase, design and construction, includes installing treatment units and the main pumping system, with hydraulic performance testing and sensor calibration. The second phase deploys full automation via a SCADA system controlling flows, quality parameters, and storage. The third phase ensures full system integration with the park and city network, incorporating predictive algorithms that adjust operations according to demand and weather conditions.

The chosen technical solution is a hybrid gray‑digital technology combining physical‑biological processes with intelligent control. The treatment chain, aerated biological filter, high‑efficiency sedimentation, ultrafiltration, and UV disinfection, provides an operational capacity of 50,000 m³/day, ensuring high‑quality regenerated water. Alternatives such as MBR membranes or constructed wetlands were evaluated, but this configuration was chosen for its lower energy consumption, smaller spatial footprint, and ease of maintenance. The decision was based on criteria of efficiency, cost‑benefit, traceability, and compatibility with Chinese environmental regulations.

The system directly addresses scarcity, quality loss, and pressure on the urban basin. By reducing dependence on municipal water, it improves the resort’s water security and mitigates risks associated with droughts or extreme weather events. Each cubic meter treated represents water not extracted from natural sources, generating quantifiable benefits estimated at more than 18 million m³/year of reused water. Reductions in emissions, chemical use, and preservation of urban ecosystems are added environmental benefits. Moreover, the project generates local employment in operation and maintenance, promoting technical skills in smart water management.

Main operational risks include potential technological failures, hydrological variability, and social acceptance. To mitigate them, redundant pumping and storage systems are implemented, contingency plans for climatic events, and shared governance protocols between Disney, Pudong authorities, and environmental agencies. Real‑time monitoring and predictive alarms prevent critical failures such as accidental contamination, supply shortages, or saline intrusion. Long‑term resilience is ensured through a predictive maintenance program, control software updates, and the gradual incorporation of renewable energy.

In terms of scalability, the model can be replicated in resorts, industrial zones, or urban areas under water stress. Its success depends on favorable regulatory conditions, digital infrastructure, and collaborative governance. The main performance indicator, reused volume and consistent quality, positions it as a competitive alternative with low operational cost per cubic meter treated. Public‑private and technological partnerships enable expansion, demonstrating that the future of water management lies in hybrid, intelligent solutions measurable in real volumetric benefits.

  • SDG 6 – Clean Water and Sanitation: this project primarily contributes by guaranteeing water security and improving quality through the treatment and reuse of over 18 million m³ annually. Reduction of BOD and COD below national limits enhances water quality in Wishing Star Lake and reinforces urban water resilience. Digital traceability through IoT sensors and flow records provides verifiable evidence of measurable impacts.

 

  • SDG 9 – Industry, Innovation and Infrastructure: acts as a technological and environmental innovation driver by incorporating SCADA systems, ultrafiltration, and predictive control. Its hybrid gray‑digital infrastructure sets new technical standards for efficiency and reliability, with reduced energy consumption and automated maintenance. Investment in clean technology drives regulatory compliance and strengthens ESG reputation in the tourism sector.

 

  • SDG 11 – Sustainable Cities and Communities: contributes to Shanghai’s sustainable management by decreasing surface runoff, reducing pressure on urban drainage, and promoting a resilient environment within the resort. Integration with the local water network creates synergies with urban planning, increasing adaptability to climate change and ensuring a replicable model in other coastal cities.

 

  • SDG 12 – Responsible Consumption and Production: the project optimizes water use through a circular system of capture, treatment, use, and reuse, achieving savings exceeding 40% compared to traditional consumption. Reduced chemical and energy use enhances efficiency and minimizes environmental footprint, showing how smart water management can be both a responsible and profitable business practice.

 

  • SDG 13 – Climate Action: reduces energy consumption per cubic meter treated by more than 25% and avoids approximately 1,500 tons of CO₂ equivalent annually, strengthening the basin’s climate resilience. The infrastructure is designed to withstand extreme hydrological variations, ensuring operational continuity during droughts or floods.

 

  • SDG 17 – Partnerships for the Goals: promotes public‑private cooperation between Disney, the Pudong government, and environmental technology companies. These alliances facilitate model scalability to other theme parks and resorts, aligning with the 2030 Agenda, CEO Water Mandate, and Science Based Targets for Water. The combination of innovation, governance, and social commitment reinforces its ability to replicate globally to accelerate SDG progress related to water and climate.

Country: 

The implementation of the Shanghai Phase II Water Supply Project follows an adaptive and phased approach, structured into six major stages to ensure technical excellence, operational resilience, and long-term sustainability. The process begins with a detailed diagnostic and baseline assessment (2025–2026), including hydrological modeling, water quality analysis, and infrastructure mapping to establish reference conditions for consumption, losses, and emissions. This stage defines key performance indicators (KPIs) such as baseline demand (m³/day), current energy use (kWh/m³), and COD/BOD concentrations.

The design and engineering phase (2026–2027) develops the master plan and detailed engineering for the treatment chain, pumping stations, and distribution networks. Advanced modeling software is used to simulate flow dynamics and optimize system capacity. The selected hybrid gray‑digital solution, aerated biological filtration, high‑efficiency sedimentation, ultrafiltration, and UV disinfection, was chosen for its superior energy efficiency and operational stability compared to MBR or RO alternatives. This design includes built‑in redundancy to guarantee continuous operation even under maintenance or failure conditions.

The installation and construction phase (2027–2030) prioritizes the construction of primary infrastructure: pumping stations, pipelines, stormwater retention structures, and treatment modules. Parallel works integrate power and communication lines to support the digital control infrastructure. Each asset is equipped with electromagnetic flowmeters, multiparameter quality sensors, and IoT nodes linked to a centralized SCADA platform. The plant’s nominal capacity of 50,000 m³/day ensures treatment and reuse of more than 18 million m³/year, achieving 90% reduction of pollutants and full compliance with GB 18918‑2002 and ISO 14046 standards.

The commissioning and validation phase (2030–2031) includes start‑up testing, calibration of sensors, and verification of the treatment efficiency under different flow regimes. Laboratory analyses validate that effluent quality meets or exceeds thresholds (COD ≤ 20 mg/L, BOD₅ ≤ 6 mg/L). During this phase, independent auditors and verification entities perform VWBA/WQBA assessments to confirm additionality and volumetric benefits.

The continuous operation and monitoring phase (2031–2035) ensures full integration with the park’s operational systems. Real‑time data collection through SCADA allows monitoring of flows, pressures, and quality metrics at 5‑minute intervals. The digital traceability system, supported by blockchain‑based recording, guarantees transparency in reporting volumetric benefits and compliance with corporate sustainability goals. Automatic alerts trigger maintenance protocols in case of deviation, while monthly and annual reports document water recovered, energy saved, and emissions avoided.

Governance of the system is shared between Disney’s environmental operations team, the Pudong Water Authority, and an external operator specialized in smart utilities. Roles are clearly defined: Disney manages compliance and reporting; the operator oversees technical functioning, maintenance, and optimization; and independent third parties validate and audit performance. Preventive and corrective maintenance plans are embedded in the digital platform, scheduling predictive interventions based on equipment condition and usage hours.

Finally, the feedback and continuous improvement phase (from 2035 onward) applies adaptive management principles. Data from sensors, audits, and VWBA measurements feed machine‑learning algorithms to refine operational parameters and improve efficiency. Comparative analyses between the “with‑project” and “without‑project” scenarios assess long‑term benefits in terms of saved water (m³), energy (kWh), and emissions (tCO₂). Continuous updates to the treatment control logic, new membrane materials, and renewable energy integration will ensure that the system remains state‑of‑the‑art and climate‑resilient for decades to come.

The project consists of implementing a reuse and circular water economy system, whose main intervention is treating and recirculating park wastewater through biological filtration, advanced sedimentation, ultrafiltration, and UV disinfection. This system has a capacity of 50,000 m³/day and covers supply for irrigation, cleaning, cooling, and lake maintenance. Technically, the process includes four stages: intake and pumping, biological pre‑treatment, physical filtration, and final disinfection, with automated SCADA control and distributed IoT sensors. It complies with China’s GB 18918‑2002 standard, Shanghai’s urban environmental quality standards, ISO 14046 water footprint guidelines, and WHO safe reuse guidelines.

The solution’s relevance lies in its ability to reverse structural water scarcity and pressure on municipal sources in one of Asia’s densest urban areas. Before the project, the resort relied entirely on the municipal network, generating high operating costs and considerable environmental impact. Phase II replaces more than 40% of extractions with regenerated water, reducing the water footprint and associated emissions. This solution suits the local context due to its high efficiency, low energy footprint, and adaptability to extreme climatic events, strengthening the basin’s water resilience.

Expected results include recovery and reuse of approximately 18 million m³/year of water, over 90% reduction in BOD, COD, and suspended solids, and substantial improvement in Wishing Star Lake’s water quality. A reduction of 1,500 tons/year of CO₂ equivalent is also expected, contributing positively to aquatic biodiversity in the surroundings. Socially, the project improves water security, generates local technical employment, and strengthens the company’s public perception of environmental responsibility.

Strategically and commercially, the initiative positions Disney as a global leader in its Water Positive roadmap, ensuring ESG goal compliance, strengthening its social license to operate, and aligning with frameworks such as Science Based Targets for Water, NPWI, and ESRS E3. The hybrid digital‑gray system allows certifiable reporting and competitive differentiation against other tourism operators.

Its modular, replicable design facilitates scalability to other parks, resorts, and urban developments in water‑stressed areas. It requires minimal technical conditions, existing sewer networks, treatment capacity, and a favorable regulatory framework, and can expand through public‑private partnerships, local authority agreements, and collaboration with technology companies.

The final expected impact is a significant improvement in the urban water balance, greater resilience to droughts and extreme events, and strengthened social awareness of regenerative water management. This project not only optimizes resources but redefines the value of water in today’s economy, sending a clear message to investors and society on how innovation and sustainability can coexist as drivers of economic and environmental progress.

 

Estimated price:

0,39 

Potential annual m3:

18000000

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Phase II Water Treatment and Regeneration Plant. Pudong. China