The research was to gain insight into the characteristics, driving forces and barriers, specifications, and other issues of water conservation outsourcing contracts (OSCs) in China. Our analysis is based on information obtained from a pre-coded questionnaire, an assessment of OSC documents, and project on-site visits and interviews. The result shows that both parties of the OSCs lack knowledge and experience in preparing contracts. All eight contract documents are underspecified, which is the key reason for the existing disputes found in all OSCs studied. Recommendations are provided by this research to improve China's OSCs in the future.