Abstract: Sustainable utilization of land resources is very important to protect the eco-environment against disruption, and to promote the coordinated growth of socio-economic and eco-environmental systems and build a harmonious relationship between human behavior and the natural world, especially in the Three Gorges Area. Based on the characteristics of small watersheds in the Three Gorges Area, the theoretical structure of sustainable utilization of land resources of small watersheds in the area was elaborated, and a model of sustainable utilization was presented based on the small Yuzigou watershed. The key to sustainable utilization of land resources of small watershed is that the land resource and agricultural construction within watersheds should be fairly adjusted.