The diversion of water to Beijing for the Olympics and for big hydropower projects threatens the lives of millions of peasant farmers in China's north-western provinces, according to a senior Chinese government official.

In an interview with the Financial Times, An Qiyuan, chairman of the Chinese People's Political Consultative Committee for Shaanxi province and former Communist party chief of Shaanxi, warned of an impending social and environmental disaster because of overuse of scarce water resources.