1) The agricultural condition of Uchikawano which is located in Kusu-town, Oita prefecture was investigated as a model zone of typical hilled area. There are hundreds of rice terraces are cultivated within a area 5 km^2. From the result of survey, it was proved that the area is behind the flat area in many aspectsconcerning to the agricultural infrastructure. Especially, the low graded conditions of farm land consolidation, load and irrigation system have seriously been influencing on the agricultural activities. 2) The regional plan for vitalizing agricultural activity of this model zone was proposed targeting the future within about one decade. First, the land readjustment and farm road improvement are necessary for advancing efficiency of themachinery farm work. Second, rearrangement of the shapes of the rice terraces is important for protecting the land from erosion. Third, the introduction of automatic irrigation system is recommended for improving water management and save labor cost. Forth, the local electricity generating systems utilizing naturalresources such as water power and solar energy are proposed for both agricultural production and daily usage by the inhabitant. 3) In the coming days, the communication of peoples between city and rural area would be important to activate the area. The information network system is expected to keep the attention of the inhabitants in cities to the rural area. The rice terrace utilization plan for urban residents would be effective for bothdirect and indirect impact on rural economy. It is also expected for not only land productivity activation but also the activation of rural residents.