YILIANG, Yunnan - Thanks to an innovative policy by the provincial government of Yunnan, residents of Daxueying village, Yiliang county, can have their farmland secured even as the country's fast industrial development takes up much of the land.

Liang Jiabao worried much about losing his land when a large industrial base was planned in the village last year.

The 64-year-old farmer was much relieved when the county government, instead of requisitioning farmland, turned to the nearby barren hills instead to build a local industrial park.

The country's policy in planning a permanent arable-land protection zone was well implemented in this province in Southwest China.

The Ministry of Land and Resources said earlier this year that a permanent arable-land protection zone will be established in the 12th Five-Year Plan (2011-2015) to guarantee the country's food security.

Minister Xu Shaoshi said a minimum land area for cultivation of 104 million hectares will be guaranteed and the area of arable land through land compensation and reclamation will be increased by more than 1.8 million hectares.

In order to protect both local economic development and the country's shrinking farmland, Yunnan moved industrial construction and fast urbanization to the barren mountains, then governor and now the newly elected Party chief of Yunnan province, Qin Guangrong said.

"It is the trend that construction for economic development is being moved to the hills while good arable land is being preserved to be used by the next generations," Qin added.

The guideline to strengthen arable land protection and prompt scientific urbanization in Yunnan, released by the provincial government in September, declared that more than 80 percent of the arable land in Yunnan will be under permanent protection.

Developers were urged to use the natural resources-rich mountains - 94 percent of Yunnan is mountainous - for building industry with the aid of the new policy and financial support from the government.

Ma Zhenhua, deputy secretary of the Yiliang county industry park, said they were cutting down taxes to attract developers who will build on the mountain surface.

Constructing the industrial park on the hills saved about 4,586 hectares of farmland.

In this case, all villagers in the nearby Daxueying village got to keep their farmland for cultivation even as the industrial activity in the hills brought several jobs to the local people.

Liang's son and daughter-in-law work in a cement plant in the nearby Yiliang county industrial park, earning about 2,000 yuan ($310) a month. Liang's family has built a two-story house. They also own a motorcycle, a television and a washing machine.

While the quality of life has improved in the area, transport has got better too, Liang said, adding that the road connecting the village to the park is lined with trees on both sides.

Zhang Zhiliang, Yiliang county chief, told Xinhua News Agency that the move-development-to-the-mountain plan helps protect arable land even as it allows more industrial zones to come up in the hills in the county.

He Zixing, director of the Yunnan provincial land and resources bureau, said this innovative development plan will fully use the barren mountains in Yunnan and save arable land from fast industrialization and urbanization.