Abstract: In a case study in Huangdu Valley of Anji County，Zhejiang Province，the red soil area was developed and controlled as a watershed unit．Red soil valley was divided into up-layer，middle-layer and bottom-layer for development and control on the top-layer of the valley，trees were planted to store water；in the middle of layer，the wasteland was reclaimed to plant case crops；in the bottom-layer，low-yield paddy fields were meliorated to increase the yield of rice．To promote good circle of economy，social and ecological benefits，the major measures taken include：terrace construction and tree-or grass-planting for soil and water conservation；soil meliorated；stockbreeding；irrigation works and road construction．After 6 years’development and control in Huangdu valley，the rate of vegetation is increa sed by 81．4％ the total area of soil and water losses reduced by 37％ ．and the average income per head increased by 157％.