Chinese water resource management (CWRM) has passed through four stages: infancy, initial development, rapid development, and formation. In the last of these stages some problems persist and will affect management performance. CWRM was a decentralised, imperfectly codified and weakly implemented system that lacked a sound market policy, rational water prices, water conservation awareness, technical support and a performance appraisal system. The government of China proposed two new strategies in 2009: the Three Red Lines and the Interconnected River System Network (IRSN). This paper analyses these two strategies and reflects on new CWRM concepts. Both strategies strive for the sustainable utilisation of water resources and human—water harmony. The concepts, quantification method and application of harmony theory to water resources management is discussed. Applications of harmony theory to water resources management include (i) harmony between humans and nature; (ii) a harmony strategy for water resources management; (iii) a rational allocation model for water resources among different areas and departments based on harmony theory; (iv) harmony—based water allocation issues associated with transboundary rivers; (v) harmony—based interbasin water transfer problems; and (vi) harmony—based control of pollution discharge. We conclude by discussing how harmony theory and its applications provide an appropriate pathway for water resource management in China.