Residents’ water price，including price on water supply and waster treatment，is an important issue on people's livelihood，which has aroused great debate in China in recent years. The industry for water supply and water treatment is a typical public department and a natural monopoly department，as a result，water pricing should not be decided by the market but must be strictly managed by price regulation. In most concerned foreign countries，especially the developed countries，the residents’ affordability has gained widely attention in residents’ water price formulation，specific agencies for water price management are set up，suitable water price affordability criteria are determined by residents’ household median income，income grouping and so on to rationally manage residents’ water price，which obtains good result. In water price reform of Chinese residents，Chinese Government should emphasize Chinese residents’ affordability on water price，should also consider reasonable return of social capital，should attach importance to the governmental investment in water supply and sewage treatment facilities construction，should reasonably classify the residents according to residents’ income distribution and income gap， should objectively evaluate the residents’ water expense burden and should realize information transparency about the residents’ water cost and water price.