 The South to North Water Diversion Project is an important component of global water networks requiring careful management to ensure optimal resource allocation. This paper proposes a supply chain approach to manage the project, taking into account the interests of all stakeholders. It also considers the impacts on water quality and consumer surplus, and develops a cost-sharing contract to optimize the decision-making process. The results suggest that increasing the cost-sharing ratio will improve the profitability of all parties involved, while increasing the concern coefficient will decrease the profitability of the water transfer company. This article was authored by Hongbao Jiao, Jiaqiao Zhang, Yinan Li, and others.