Water management in arid land is the focus of this study. Water reuse is used more and more for irrigation of field crops, landscape, and other applications. However, the use of treated wastewater for irrigation is subject to major concerns because of the probable escalation of hygienic and environmental harms. This research is based on two models: products diversification and economic of scope as a foundation of integrated production system. An integrated farm must be able to share common economic resources: land, water and labor without congestion to be profitably successful; which in turn will create a sub additive cost function. The economic theoretical model is established and a systems analysis paradigm is utilized. It was determined through the process of comparative statistics that a direct relationship between the input of one product and the output of the other good is present in the case of technical complementary product interdependence. Additionally, there is complementary product interdependence; a change in the price of one good would lead to the same change in direction for output of the other good. Furthermore, the competitive analysis comprehensively examines the difficulties an integrated producer faces in creating and maintaining a long-term presence in the market. Moreover, foreign producers could create an entrydeterring price for the new product markets. The study is intended to help future new crop research in arid areas offset the two major water problems in the arid land, increasing water prices, and water scarcity. Keywords: Water resource management, arid land, economic feasibility, multiple use of water, sub additive cost function, diversification model, water demand.

Water management in arid land is the focus of this study. Water reuse is used more and more for irrigation of field crops, landscape, and other applications. However, the use of treated wastewater for irrigation is subject to major concerns because of the probable escalation of hygienic and envir...