The Chinese government has raised great attention on water resources and environment over the past several years. In dealing with the issues of water pollution, water management, and the imbalance of water resources, China’s state council released “Water Pollution Prevention and Control Action Plan” in 2015. This policy has become a guideline to promote water sustainability in the long run. Since then, a number of regulatory policies were released to increase the focus on water conservation. Among those actions, water loss control associated with distribution systems is regarded as a key solution to improve water supply efficiency. This paper provided a comprehensive introduction to the framework of water loss control policy in China.