Most of those from the reservoir area are being moved to a place far away and have to make a new start in life. Those living along the canal are being moved near or inside their villages. They face smaller difficulties in their future lives, with most problems able to be addressed by the village committees.

But Zhang said unfairness did exist in the relocation. Local governments were required to make more efforts to address the issue and the Law on Land Administration, on which the compensation package was made, was being amended, he said.

The South-to-North Water Diversion Project is one of the largest water projects in the world. The government approved it in December 2002 after a half-century of debate. The project consists of eastern, central and western routes. The first two routes are already under construction, while the western channel is still at the planning stage.

North China is home to 64 percent of the country's cultivated land, but has only 19 percent of the country's water resources.