The Synergy of Water Resource Agglomeration and Innovative Conservation Technologies on Provincial and Regional Water Usage Efficiency in China: A Super SBM-DEA Approach

China is currently facing the significant task of effectively managing its water resources to satisfy the rising needs while grappling with the growing worries of water shortage. In this context, it becomes crucial to comprehend the importance of resource agglomeration and technological adoption. Thus, this research examines the relationship between water resource agglomeration and the adoption of innovative conservation technologies in enhancing water usage efficiency at provincial and regional levels in China (2006–2020). In the first stage, the study utilizes a super SBM-Data Envelopment Analysis (DEA) methodology to evaluate the water usage efficiency of China’s provinces and regions. In the second stage, we find the dynamic nexuses between water resources, water technologies (recycling, sprinkler irrigation) and water usage efficiency by applying a systematic econometric approach. SBM-DEA analysis revealed that Beijing (1.08), Shaanxi (1.01), Shanghai (1.23) and Tianjin (1.01) remained the higher efficient over the years. Six provinces (Guangdong, Shandong, Jiangsu, Inner Mongolia, Hebei, and Zhejiang) are in the middle ranges (0.55–0.83). In contrast, nineteen provinces have the lowest water usage efficiency (0.21–049). Qinghai and Ningxia are on the lowest rank (0.21) and (0.22), respectively. The findings recommended that the water resources impact is negative. In comparison, the impact of water-saving mechanisms on the efficiency of water usage seems to be positive, as recycling technology significantly enhances the water usage efficiency in China’s province. The study found that GDP growth has a negative impact on water usage efficiency in the early stages of economic development. Still, as economies mature, this negative impact diminishes, indicating a tendency to allocate more resources to water conservation and efficiency. Water recycling technology, the modernization of irrigation methods, and water resource management can enhance water efficiency.