China’s South–North Water Transfer Project has been questioned as it has resulted in significantly negative issues. Drawing on the notion of hydrosocial territories, this article examines the contested hydraulic configuration and counter-imaginaries from local water users’ perspectives and their specific adaptation strategies in the South–North Water Transfer Project. This article argues that local water users in a Chinese context can only adopt adaptation strategies that are determined by their socio-economic backgrounds. This has led to significant social and environmental injustice. Addressing these issues is crucial for tackling inequities in the South–North Water Transfer Project and achieving the ambitious development goals of the project.