SONGJIANG District has shut down seven industrial companies near one of the city’s major tap-water sources on the upstream Huangpu River to prevent pollution, the district government said over the weekend.

The central government’s environment inspection team found the companies, which include state-owned Shanghai Shipyard Co, had illegally set up plants at the end of last year near the river’s water source, which affected the water quality of the source.

Under the water pollution protection law, it is forbidden to set up construction projects or discharge waste water in water source protective zones.

These plants must be shut down or demolished. The companies also face a maximum fine of 500,000 yuan (US$73,810). If they fail to close, the illegal plants, the fine will be doubled.

All seven companies have stopped production and operations at the plants, the district government said. A plastic company and a ship repairing company have already demolished the plants near the water source.

The five others, which include shipyard and a trading company, have started demolishing work, the Songjiang government added.

The government has also discovered a further two firms, a trading and a yacht company, have illegally set up structures near the water protective zone. They have been ordered to stop production and to demolish their illegal operations. Their water and electricity supplies have been cut off.

The district’s maritime and police will patrol the area more frequently to prevent pollution within the protective zone, the district government said.

It has demolished 1,198 similar illegal industrial projects mostly near the water source since 2014, according to Songjiang officials.