2Most policy makers readily acknowledge the economic, environmental, and social benefits of moving freight and passengers by waterways. However, why do many countries struggle to develop and revive their inland waterways transportation (IWT)? One reason is because of the dearth of successful examples of IWT revival. Besides the United States and Europe, which have been relatively successful, the experience of many emerging countries has been a tale of intensive use followed by total collapse of the IWT sector. However, the combination of societal, economic, and environmental imperatives is motivating a rethink as countries look to develop sustainable transportation systems and curb greenhouse gas emissions from the transport sector. China's experience has similarities to the experience of many countries and offers valuable lessons. This report is the result of an in-depth retrospective study of IWT in China and fills a gap in global knowledge. China went from an IWT system that carried fewer than 150 million tons in 1978, to carrying 3.74 billion tons of cargo in 2018--six times more than either the European Union or the United States. China now has the busiest IWT system in the world. China's leadership in IWT development started with years of investment in infrastructure that transformed low-grade waterways, allowing larger vessels to use the waterways and resulting in higher transport efficiency and lower cost. China invested in the development of skills and technical know-how. To date there are 127,000km of inland waterways in China, which have high-quality navigability and a good safety record. During the period of rapid economic development China also adopted or developed internationally recognized technical innovations for river classification, vessel replacement, navigation technology, and environmental protection. What China achieved can be informative to other countries. Further, how and why China improved its inland waterways for transportation is especially relevant and provides valuable lessons.