Waste water from a heating station near the city of Lanzhou contaminated 1km of the river, the country's second longest, according to Xinhua.
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Local environmental officials said the red plume of water "very possibly" came from a station that provides heating for Lanzhou residents.
The plant had added a red dye to its water to prevent people from siphoning off the hot water from the pipes it used, officials were quoted by Chinese media as saying.
Tests found the dye was not toxic, and the spill lasted for around an hour.
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