The major areas of key harnessed small watersheds in Taihang mountain of Hebei province were investigated in order to study the economic development patterns of the area. Based on the rock characteristics

geographical position and topographical conditions

four types of the small watershed areas were divided

i.e

the gneiss small watershed type in the west deep mountain area

the gneiss small watershed type in the east shallow area

the limestone small watershed type in the steep slope area

and the limestone small watershed type in the gentle slope area. Land use structure

industrial structure and investment structure of the four types of small watershed area were analyzed with multiple linear regression and gray forecast theory. Optimum patterns of economic development for the different types of small watershed area were also worked out.