Terraced land may create a better environment for crop production by moisture conservation.In addition, terraced land is more resistant to soil erosion during intense storm and sediment from terraced land is lower than that from slope land.In yan’an, drought and poor soil fertility are the main rest rictive factors for the prod uction of dryland crops.From the practical perspective, research on t he techniques of water loss and use is essential.Great attention has been paid to the management, demands, and more efficient use of the limited water resource on terraced land.In this paper, the approaches of effective conservation and eff icient use of water on terraced land in Yan’an are reviewed, including conservation tillage, mulch cultivation, limit- ed irrigation, and introduction of water-saving varieties.Soil fertilit y improvement should be suitable to the local agricult u ral conditions in Yan’an.