There was a complex interaction between water management policy and desertification in arid area. Based on the method of combined of field survey and participatory interviews, we studied that water resources utilization and the effect of water management policy performance on water crisis and desertification. The result showed that water resource management policy has been made remarkable achievement. Compared with 1963, water consumption per area has dropped 29.6% in 2008, single well irrigation efficiency have risen 23 times. This effect ensured the agricultural production under water reduction of Shiyang River. But due to lacking of water rights system, water management policy provided water resources and technical support to land scale expansion. Total water consumption of agriculture has been grown from 3.67×106m3 to 11.45×106m3. Plant has been degenerated and decayed with groundwater over-exploitation. Therefore, water saving is a segment of controlling desertification, water resource management policy aggravated the process of desertification.
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