The increasingly prominent imbalance between supply and demand of water resources has become an important constraint to the sustainable development of China's economy and society. The leverage of water price is an important means to regulate the interests of the government, water supply operators and water users. Scientific formulation of water price is beneficial to encourage the social capital to participate in the construction of water conservancy infrastructure, to promote the optimal allocation of water resources and to save water, and to ensure the water demand of water users. Under the premise of VFM, the water price accounting of water conservancy projects under PPP mode must fully consider the willingness and affordability of water users as well as the cost compensation and reasonable income of water supply operators so as to investigate the mechanism of water supply priceof PPP water conservancy projects in China. At present, the mechanism of the water supply priceof the PPP mode in China has been innovative, but the dynamic adjustment mechanism is still insufficient; the price hearing system hasbeen continuously improved, but the public participation level needs to be strengthened.