The objectives of the study are to simulate the predicted"resource gap" which will follow a World Bank Loan Programme forschistosomiasis control in China using the cost information andto derive policy implications for financing the programme in thefuture. Firstly, methodologies and cost models for calculating thecost and unit costs of different control options have beenestablished. Using hypothetical and actual cost data of theschistosomiasis control programme in China, the study simulatedand analyzed the resource adequacy after the termination of theWorld Bank Loan programme under different scenarios. It isconcluded that financial constraints would occur once the BankLoan finishes. Government financing for the programme would beinadequate even to maintain the level that pertained before thestart of the loan programme. Further, in reviewing the financingmechanisms of the current control programme, it is realized thatgovernment financing is unlikely to increase substantially basedon the situational analysis. On the other hand, the currentattempt to integrate snail control into agriculture oraquiculture production projects is evaluated high as analternative financing scheme for continuing the programme incertain regions. External financing was not and will not be theprincipal and reliable financing mechanism for China'sschistosomiasis control programme. Based on the above analysis, some important policyimplications for the current financing problems of the programmeare derived and discussed. It is recommended that health plannersshould still rank control of the disease as high priority. Newdelivery structure to integrate the control programme intoprimary health care should be probed. Community involvement forlocal control activities should be pursued with regard to thepossibilities of cost sharing and community financing. Thecurrent drug/molluscicides production/importing policies shouldbe reviewed. The domestic production of praziquantel should beoriented to provide the domestic market, while the factory producing niclosamide should continue its production but reduce the cost.