Arid areas are among the most sensitive areas to the impacts and responses of global climate change. It is imperative to implement effective adaptive management strategies to promote the achievement of sustainable development goals for the social-ecological system (SES). However, relatively few studies have focused on the direct impact of adaptive management policies related to social institutions on the social-ecological system. We selected Minqin County, a typical arid area in China, as a case study. Based on policy documents, statistical data and survey data, we employed methods such as partial correlation analysis and difference-in-differences models to analyze the spatiotemporal variations of various factors in the social-ecological system of Minqin County from 2000 to 2020, and to explore the impact of "shutting down the wells and reducing the farmland" policy on this social-ecological system. Results showed substantial ecological improvements post-policy implementation, including increased vegetation cover and carbon sequestration and decreased land desertification. Notably, groundwater mineralization and depth, along with cultivated area, shifted from increasing to decreasing trends following policy implementation. Socioeconomically, the policy significantly influenced agricultural structure, prompting farmers to transition from traditional grain cultivation to economically efficient, low-water-use crops and non-agricultural livelihoods. However, impacts on social factors, such as population density and rural employment, were not significant. This study aims to explore the effectiveness of ecological policy implementation in the context of environmental changes in arid areas and other ecologically fragile areas, providing valuable decision-making references for the sustainable development of global arid areas.