Abstract: In recent years, due to water resources shortage, the total water intaking volume from Yellow River in Hongsibu district of Wuzhong City, Ningxia, exceeded the allocated index, in addition, the water use structure is unreasonable, resulting in serious water supply situation. For these reasons, Ningxia autonomous region determined the district as a pilot one of water right trade, which focuses on agricultural internal water right index trading to promote agricultural water saving and upgrade water saving initiative of farmers. Based on the pilot practices, this paper puts forward a technical scheme on agricultural water right transfer to industry water right with land circulation from farming land to industry land in the aspects of water saving potential analysis, trading water volume determination, trading subject and object of water right, contract term, trading fee, trading procedure, supervision and management etc., to provide theoretical basis and technological support for water right trading in the Yellow River Basin.