The resettlement and loss caused by inundation at Kaixian in the area of the Three Gorge Reservoir is tremendous. The proposals of “large protection” and “small protection” schemes for reducing the inundation have been rejected. A scheme of land creation by sand retaining and water sluicing has been proposed by the author. The principle of this proposal is to keep the water of Xiaojiang River to flow out, but retain the sediment at river bed and flood plain. In this case the sediment is taken as a useful resource to heighten the level of land, on which a lower levee will be easily constructed to protect the farmland along the Xiaojiang branch reservoir.The original farmland will turn to be more rich and be preventable from drought and water logging disaster all the year. All together 37.8 thousands mu (2, 495 hect.) farmland will be protected and 11.0 thousands mu (726 hect. ) flood plain will be changed to farmland. This area can compensate nearly the total inundated land of 50.3 thousand mu (3, 320 hect.) at Kaixian. The feasibility study supported by the Ministry of Water Resources is now carried out. This scheme with its low cost and big profit can be applied to the similar project.