Abstract: The flood control investment can not only change the land property, but also transform the original useless land into usable.In order to grasp the variation history of the land utilization caused by investment, taking the flood control investment for a certain river as an example, a land utilization model to reflect the variation of land utilization was established. In the light of the concrete conditions of a flood control investment, simplifying the social structure into families and land holders, specifying the expecting indirect utility function as the charming-degree index for land selection, the land demand and the land rent were solved by means of the proposed model. The feasibility and reasonableness of the model was discussed with a calculation example.

Key words: utility function, land utilization, demand, supply