Abstract: Currently， environmental pollution is a serious issue in China. To handle it， compulsory liability insurance against environmental pollution may serve as an effective measure. As a basic type of environmental pollution， water pollution has its own unique features. Priority should be given to compulsory liability insurance due to its great significance and value in dealing with water pollution. Although the government has introduced the relevant guidelines of compulsory liability insurance against environmental pollution， it is still necessary to construct the specific compulsory liability insurance against water pollution. The construction principles are included in but not limited to the following-valuing the particularity of water pollution， publicizing step by step， stressing case solution and balancing interests. To optimize the effect of compulsory liability insurance against water pollution， such related mechanisms need to be implemented as the environmental liability system of the government， the participation and supervision system of insurance companies， the litigation system of public interests and the dispersive system of risk assessment.

Key words: water pollution, compulsory liability insurance, balance of interests, public interest litigation, risk assessment