China not only has the shortage of water in quantity but also should not neglect shortage of water in quality because of environment pollution. By developing “quantity by quantity” water rights transaction through industrial enterprises’ investment in agricultural water-saving projects, “quantity by quality” water rights transaction of industrial enterprises by investing water pollution treatment projects can effectively ease the shortage of water in quality and “increase the sources” of water resources utilization. The promotion of the multiple reforms of China such as water rights transaction practice, the continuous perfection of water rights transaction institution and the marketization of water pollution treatment provides the possibility and condition for the realization of “quantity by quality” water rights transaction. China should improve the registration of water rights confirmation, develop a two-tier market for water rights transactions, strengthen the two-dimensional measurement and monitoring of water resources, introduce relevant measures and incentive policies to actively boost the construction and development of “quantity by quality” water rights transaction model.