This report outlines the development and significance of water transport networks based on Yunnan's six water systems. The author first outlines the development of water transport networks in the Lancang-Mekong; Sino-Myanmar road-water through transport; and Sino-Vietnam cooperation on Honghe river transport. They then describe sub-regional water transport construction and its implications on GMS cooperation regarding infrastructure improvements, urbanization, tourism and economic growth. Existing issues and policy recommendations are offered.