Central and regional governments will invest $406 million in the next five years to move people in 185 villages from six counties to 42 new settlements along the Yellow River.
Each farmer will get 0.16 acres land.
Xinhua reports that drought is the main cause of poverty in central Ningxia as the area receives less than 200 mm of rainfall each year, and 40,000 people in the area cannot feed themselves.
"Poverty reduction programs cannot change their status quo. Relocation is the most effective way," said an official.
