Agriculture industrial structure of Wangdongguo watershed developed from unitary structure with planting food mostly in history to three parts structure including food, fruit and industry by exploring optimize pattern of agriculture structure and regulating agriculture industrial structure according to the characteristics of gully region of loess plateau. By increasing efficiency of water use and fertilizer resources, and gaining highly potential dryland output, average food per product in 15 years reached 4 100kg/km², thus food could be self support basically with one person only possessing 733m ² dryland field; Soil and water loss controlling and vegetation construction have been developed according to the characteristic of soil and water loss on the gully region of loess plateau. Now, soil and water conservation in Yuan physiognomy, slope and gully have been finished in high standard with plant covering rate reaching 43%, soil and water loss controlling rate reaching 92%, soil erosion modulus decreasing to 504t/(km²·a), the controlling effect is notable.