Funding by Canadian International Development Agency (SIDA). Total input 10 million CAD. Implemented by Lethbridge Research Center and Hebei Academy of Agriculture and Forestry Sciences. Duration: Phase 1: March 1991 – March 1996 Phase 2: March 1996 – October 2003 Objectives: Develop environmentally sustainable dryland technologies to increase water use efficiency; improve soil and water quality; improve agriculture efficiency of Hebei Lowland plain; improve farmer’s income. 8 programs involved in phase 1: water-saving irrigation; conservation tillage; soil and water control; agro-climate and crop growth; drought resistant crop variety development; conservation farming machinery development; cropping system improvement; soil resources evaluation. 6 programs involved in Phase 2: improve water use efficiency; develop sustainable cropping system; integrated pest management; improve environmental sustainability; socio-economic impact and rural development; agriculture extension. Achievements: obtained a series of practical technologies in the areas of water-saving irrigation, conservation tillage, drought resistance cultivar breeding, cropping system improvement and integrated pest management. These technologies have been extended to over 6 million hectares. In the demonstration areas the water use efficiency increased 30%, cotton yield increased 42.9%, maize yield increased 30%, fruit 3.5 times with the quality improved as while. 70 scientists had been trained in Canada, including 8 persons for advanced degree. The returned trainees are playing important role in their research. 15 of them become leading scientists of the Academy (about 1/3 of the total) and 2 of them become the Academy vice-president, 9 of them become Institute directors. On the basis of the project the academy organized the International Conference on Environmentally Sustainable Agriculture for Dry Areas for the 3rd Millennium in 2002. The project leader on Canadian side Dr. Steve Morgan-Jones got China National Friendship Award in 2004. Vice Premier Hui Liangyu presenting friendship award to Steve Morgan-Jones