Abstract: This paper defines water rights as the ownership,use rights and administration rights of water resources.Water rights administration is a complete process,including water rights allocation,transaction,supervision,and compensation,water rights institution being the core of water rights administration.At present,there is a lack of systematic research on the whole process of water rights administration and systematic establishment of the water rights institution.During the period of economic reconstruction and institutional transition,water rights administration must give priority to institutional orientation,institutions of water rights recognition,of transfer and transaction,of supervision and administration,and of compensation incentive forming the most stringent water rights institutions.On the basis of the improved "conceptual model of water rights hierarchy",we further establish the framework of water rights administration reform with the most stringent water right system as the core,which provides a holistic approach and reform strategy for the administration of water rights in China during the transition period.

Key words: water rights administration, water rights transaction, the period of transition, institutional construction, Shandong province