The financial and taxation policies of energy conservation and emission reduction are of important reference value to the establishment of incentive mechanism to promote water saving. Their main contents are analyzed. It is put forward that promoting water saving should draw experience from the energy conservation and emission reduction and establish the corresponding system of financial and taxation policies. Such a system needs to strengthen the overall coordination mechanism at national level. It should broadly cover water saving in various sectors and fields of agriculture, industry and life. Various measures such as subsidy, reward, discount and tax benefit are demanded. The policies should be continuous and stable, and the supervision of utilizing funds should be strengthened.