Chinese Vice-premier Wen Jiabao called for the best allocation of water resources in the country's northwest region, in Beijing on Monday.

When hearing a strategic report on the allocation of water resources and environmental improvements in northwest China made by China's Academy of Engineering, the vice-premier said the use of water resources and environmental development in the northwest were the two key issues for the growth of the country.

Water shortages were a barrier to economic development in the northwest region, he said. To better solve the problem, the key was to achieve a balanced coexistence between people and nature.

He said local governments should restructure local industries in a bid to boost water conservation and curb polluting agriculture and industry.

He urged the best allocation of water resources in the northwest, saying they should not only support the region's economic and ecological growth, but also be maintained for sustainable development.

The Academy of Engineering took more than one year and organized 35 members plus nearly 300 experts to conduct field research and write the comprehensive report.