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TOKYO (Kyodo) -- The ruling Democratic Party of Japan and the main opposition Liberal Democratic Party on Friday began making adjustments prior to the submission of legislation during the current parliamentary session aimed at preventing foreign ownership of water resources in Japan, parliamentary sources said.

The legislation to be sponsored by lawmakers of both parties aims to prevent the purchase and uncontrolled development of reservoirs areas by foreign capital.

The move comes amid increased purchases by foreign funds of forest areas that serve as water sources.

The law would stipulate establishing a headquarters in the Cabinet Secretariat to control water-related administration and require the government to implement necessary legislative and fiscal measures.

The DPJ and the LDP plan to commence formal party procedures for submission of the bill soon, the sources said.

Adjustments by the parties have so far only revealed small differences over the matter, making the bill's submission during the current parliamentary session highly likely. But its passage could be jeopardized if the ruling and opposition parties clash in the Diet over other issues.

The bill would stipulate that water is a precious, shared national resource, and the central and local governments have a responsibility to devise and implement water-related policies.

The fundamental law concerning the water cycle will call for proper regulation on the use of water resources, while stressing the need to maintain forests, rivers and farmland that serve as water sources.

Under the legislation, the central government would be required to set a basic plan every five years to implement comprehensive water-related policies and report on progress to parliament every year.

The legislation does not directly refer to foreign capital but one of the sources said, "It is clear that the bill has foreign capital in mind."

There have been growing calls for water-related administration to be streamlined as it is currently divided up among the forestry, industry and other ministries.

Senior officials in charge of the parties' policies have informally conferred over the matter, with final adjustments being made with the participation of members of a cross-party group of lawmakers led by former LDP Secretary General Hidenao Nakagawa, according to the sources.