Enterprises exempted from water conservancy construction funds include: production and business units and individual industrial and commercial households that have not reached the threshold of value-added tax and business tax, enterprises with income from production and business operation exempted from value-added tax and business tax as stipulated by the state, military enterprises stationed in Hunan, national defense projects, flood control projects, orphanages and construction sites for nursing homes.

Water conservancy construction fund is a government fund specially used for water conservancy construction. It consists of central water conservancy construction fund and local water conservancy construction fund. The central water conservancy construction fund is mainly used for the maintenance and construction of major river key projects related to the overall situation of national economic and social development. Local water conservancy construction funds are mainly used for urban flood control and the management, maintenance and construction of small and medium-sized rivers and lakes.