Abstract: Exploring the relationship between industrial water use and economic development has both theoretical and practical significance. Based on the provincial panel data of China from 1999 to 2018, we conducted EKC (Environmental Kuznets Curve) test on the industrial water use of national and regional groupings, and measured the formation mechanism of Kuznets curve using the LMDI(logarithmic mean divisia index) method. Results manifested that: 1) the Kuznets Curves of industrial water use in the whole country and in the central region displayed an “N” shape, in the eastern region a monotonically increasing straight line, and in the western region an inverted “U” shape. 2) Province groups with low industrial water consumption and low industrial growth rate, low industrial water consumption and high industrial growth rate, high industrial water consumption and high industrial growth rate, as well as high industrial water consumption and low industrial growth rate displayed different features in EKCs — monotonically decreasing straight line, inverted “U” shape, “N” shape, and also “N” shape, respectively. 3) Among the three driving factors for industrial water use, water use efficiency promotes water saving; economic expansion drives water use; industrial structure is in an inverted “U”-shaped relation with the change rate of water use. The results confirmed the existence and diversity of the industrial water EKC curve, and reminded the government to take into consideration various factors and adapt to local conditions for precise implementation.

Key words: industrial water use, Kuznets curve, logarithmic mean divisia index, economic development, water resource economics