The monitoring data for 25 peasanthouseholds in Wangdonggou watershed in the loess upland gully area indicate significantchanges in some aspects. After implementing 20 year comprehensive measures of soil and water conservation

landuse structure of the watershed tends to be rational. Agricultural industrial structure has been optimized. The behavior of peasanthousehold promotes the developmentof regional economy. Peasantper capita netincome has been increased. A high efficientand stable agriculture eco-econo my system has been established. From the analyses of the economic developmentprocesses of the 25 house-holds

itfollows thatfor the developmentof the regions similar to the loess upland gully area

scientific inputshould be further strengthened; natural resources should be used rationally; special agricultural industries should be developed; farmers quality of science and culture should be improved; and the governmentwork ing functions should be further enhanced.