Abstract: The semi-arid region of China has an area of 2.2×10 ⁶ km ². Water shortage in this area is the core but not the only resistance to the sustainable development of agriculture. To use energy and all kinds of resources effectively, to protect environment and to keep the ecological balance of the nature should be paid great attention so as to realize the sustainable development of agriculture. The extensive development of rural yard-economy is necessary in this region. After making a discussion on issues related to sustainable development of agriculture, a new model of yard-economy was developed on the basis of our recent years studies.

Key words: semi-arid region, yard-economy, water-harvested agriculture, development model