BEIJING -- China will establish an ecological compensation mechanism in the Taihu Lake basin to speed up water environment improvement and foster integrated ecological governance of the area.

By 2023, the ecological compensation mechanism of the Taihu River will be established. Coordinated, systematic and holistic governance of the Taihu Lake basin will markedly improve, according to a guideline released by the National Development and Reform Commission, the Ministry of Ecology and Environment, and the Ministry of Water Resources.

The water quality of the Taihu Lake basin will be improved continuously and the ecological foundation for high-quality regional development will be further consolidated, said the guideline.

By 2030, the ecological compensation mechanism of the Taihu Lake basin will be basically completed, setting a model for the comprehensive and coordinated treatment of water environments, according to the guideline.

Taihu Lake is China's third-largest freshwater lake.