Not sure any laws and regulations about 'underground water' management in China. What happened is not about the forest irrigation issue but blocking underground water issue which should not happen even without the forest. Underground water is like rivers and nobody has right to block it and impact others' water usage, and government should have some laws/regulations for such things and should be discussed and settles by all related people and government. Don't know the situation in China, probably nobody cares as long as money for government.