Abstract: The three factors caused inefficient economic sytem in oasis : inferior quality of people, in-accessible transportation condition, arid and lacking water. For this reason, modern economic system of oasis is an effective model which can promote sustained development of regional eco-nomic. The construction of modern economic system of oasis must be fit for its characteristics of natural environment and economic development. Five principles defined to construct it: (a) principle of water benefit; (b) principle of ecological benefit; (c) principle of opening to the out-side world; (d) Principle of comparative superiority and (e) principle of self-containment. In the light of these principles, the author studied the model and direction of agriculture and indus-try development, rational utilization of water resource, formation and development of city and town, development of energy resource and allocation of transportation and communication in Xinjiang.

Key words: modern economic system of oasis, connotation, principle .operating model