The standing Committee of the Shanghai People's Congress will discuss the proposed law for two to three months before voting on it.

The law would also outlaw almost all constructions in the city during high school and college entrance exams in June.

"Our revision aims to tackle new problems created by the city's ever-changing situation," Hu Yunhua, a member of the Standing Committee, said yesterday during a legislative meeting.

Current environmental laws don't set any fine for factories that dump untreated sewage into rivers and creeks. Violators are only charged a very small "pollution fee" based on the quantity of discharged sewage.Xu zuxin, director of the Shanghai Environmental Protection Bureau, said the city currently charges companies less than 1 yuan for each ton of untreated sewage they discharge.

"That unreasonably low penalty hinders the city's efforts to protect its waterways," she said.

Under the proposed law, factories found guilty of discharging sewage can be fined repeatedly until they clear up the situation.

While the city has made cleaning up its rivers and creeks a high priority, water pollution remains one of its biggest environmental problems.

Earlier this month, eight local companies were found guilty of discharging untreated sewage into the Huangpu River and other waterways.

The draft law also includes clauses to limit noise pollution during high school and college entrance exams in June.

All constructions, except for emergency repairs, would be banned in the run up to exams, and companies violating that rule would face fines of up to 100,000 yuan.

The city set up a similar regulation this year, but the new law would save lawmakers from having to pass a new regulation every June. The proposal says any company found breaking environmental regulations will have to correct the situation within one year. Current laws have no such provision.