Abstract: The advantages and disadvantages of farmland terracing and natural plot were discussed taking for example of Muduhe small watershed in karst valley area.The farmland terracing can be taken into account in the area that the level of karst rocky desertification is less than 25% in order to increase the basic farmland.The land utilization patterns of natural plot should be carried in the area that the level of karst rocky desertification is greater than 25% and will be removed to the planting of cash crops.It was the crux of natural plot utilization that the simple engineering measures was carried and the bio-control method and engineering measures should be combined in order to assembly minimize soil and water loss.