The Chinese government will spend Rmb6.7bn to combat the severe drought in northern China, reported China Daily. The drought is the worst in six decades in many areas, and has had a big impact on grain-producing regions that have not experienced significant rainfall in more than three months.

The money will be spent on diverting water to affected areas, constructing emergency wells and irrigation facilities, and other measures, the State Council said in a statement after an executive meeting chaired by Premier Wen Jiabao.

The State Council warned the situation could worsen, saying rainfall across northern China for the foreseeable future would remain below normal levels. Some 2.57m people and 2.79m livestock are suffering from drinking water shortages, official figures showed.

In southwest China, Chongqing will invest Rmb50bn in water conservancy projects between 2011 and 2015, the municipality’s Water Resources Bureau said. During this period it will construct a large reservoir in Yutan, about 40km east of downtown Chongqing, along with 21 medium-sized ones and a batch of small water resources projects designed to solve the water shortage problem.