It needs three institutions to build water market:the institutional framework of water market,the subject of water market and the registration of water rights.

The transfer of water rights should be made with a.

The transfer of water rights is neither a transfer of ownership of water resources nor a transfer of obligatory rights arising from a water contract.

From the angles of concept, legal theory, legislation and practice of the transfer of water rights, the authors select the main points of it to research, and evaluate the main ideas of the transfer of water rights in the academe.

Based on the abundant literature,the advances in research,achievement and methods of water rights transfer and markets at home and abroad were reviewed.

Under the circumstances of the shortage of water resources,the difficulty to add new source of water,the more profitable industrial and urban water consumptions should be achieved by water rights transfer from agricultural water rights,the research on agricultural water rights became an important task during the process of water rights management.

The contract of water rights transfer is a new civil contract.

This paper summarize the current situation of water rights in China,and also review the USA,Australia,Chile s water right transfer system.

The legal system of water right transfer has drawn the attention of the whole world and it is imperative to establish a perfect legal system of water right transfer for optimizing resources and achieving sustainable development.