Inadequate　water　quantity　and　substandard　water　quality　exacerbate　China＇s　water　scarcity,　posing　economic　risks.　This　study　assesses　the　impact　of　water　conservation　and　carbon　neutrality　policies　on　the　water　scarcity　risk　(WSR)　across　304　prefectures.　On　the　basis　of　the　assessment　of　the　2017　local　WSR　and　transboundary　flows,　we　developed　four　scenarios　to　project　policy　impacts:　BAU　(no　interventions),　WCS　(water-saving　policies),　LCS　(carbon　neutrality　policies),　and　COMS　(integrating　both).　The　results　show　that　in　2017,　WSR　accounted　for　8.0%　of　China＇s　GDP.　By　2060,　compared　with　BAU,　WCS　could　reduce　the　WSR　by　46.6%,　whereas　LCS　yields　a　10.9%　reduction　because　of　shifts　to　less　water-intensive　industries.　Under　COMS,　the　WSR　would　decline　in　89%　of　prefectures,　whereas　11%　of　prefectures-mainly　in　Inner　Mongolia,　Xinjiang,　and　Shandong-would　see　increased　WSR　due　to　trade-offs　from　carbon　policies.　These　findings　provide　insights　for　developing　region-specific　strategies　to　manage　water　scarcity　risks　more　effectively.