The promotion of water-saving irrigation on regional level will bring complex impacts on agricultural production, farmer's welfare, exploitation and utilization of water resource. The policy on the development of water-saving irrigation are not always positive and practical. The overall goal of this study is to analyze the impact on irrigation methods, plantation structure, water consumption and economic benefits brought by drip irrigation under film (DIUF) promotion policy. Based on a field survey in North China Plain, this study set three policy scenarios which limit total irrigation area and total water consumption. The results showed that: In terms of agricultural production and farmer's welfare, DIUF promoted the utilization of irrigation methods (increased by 70%, 70% and 64%). Driven by economic benefits, farmers tend to grow economic crops which are relatively water-consuming to increase net income (increased by 77.54%, 60.72% and 46.52%). On the aspect of regional water resource development and utilization, subsidy on the DIUF increased the total regional water consumption with the change of irrigation methods and plantation structure (increased by 34.27%, 32.20% and 21.84%). Surface and underground water compensation through reflux and leakage decreased (decreased by 78.65%, 70.93% and 73.20%). These results and implications offer an insight to improve strategies and policies that enable to cope with water scarcity in arid area. (C) 2018 Elsevier Ltd. All rights reserved.