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Water is the basic natural resources and strategic economic resources, ecology and environment is masterful elements. With the development of social economy and the increasing growth of population on earth, is already more and more the water cannot satisfy their needs, water gradually from a commonplace often things and gradually became a scarce resources. This article in this context, detailed explanation of water right and water right circulation as one of the main ways of water rights transfer connotation and features, and based on this, from various angles such as economics and law, based on China's national conditions analyzed the water rights transfer the feasibility and necessity of our country, and points out that the current water rights transfer system there are various legal barriers, that should be in line with government regulation and market decide, equity and efficiency, and compensatory transfer and reasonable compensation of combining the basic principles to build our water right transfer system, reasonably determine the water rights transfer price, establish and perfect the water rights registration of transfer mechanism.