China has issued a new regulation on compensation and resettlement for farmers whose land is acquired to build large and medium-sized water control and hydropower projects.

The regulation said that the compensation should be 16 times the average yearly output value of the land being acquired, and allow the farmers to maintain their living standards.

Compensation for trees, farming facilities and other personal assets on the land should be paid directly and in full by the local county-level governments to farmers, said the regulation.

Farmers being required to leave the land can build their new houses based on their own needs, said the regulation. Local governments are not allowed to set up compulsory standards for new houses.

The regulation, which has been signed by Chinese Premier Wen Jiabao, is due to take effect on September 1.

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