Abstract: With the acceleration of China’s urbanization process, the investment in water environment governance led by government investment has been unable to meet the growing demand for sewage treatment. By studying the relative efficiency of water environment regulation during the period of 2006—2015, this paper makes use of the three-way mixed strategic game to analyze the Nash equilibrium point of governments, enterprises and the social public, then it conducts an empirical test on the reliability of the game analysis. The results show that the pollution situation of water environment in China is repetitive and presents a slight anti-N-type. The game between the interest groups based on water environment regulation will affect the effect of water environment regulation. Therefore, it is necessary to increase the regulation on corporate wastewater discharge, strengthen the punishment intensity on the violations by the water environment supervision departments, and improve social supervision mechanisms.

Key words: environmental Kuznets curve; water resources; environmental regulation