Modernizaion of rural regions and their agriculture is completed by a comprehensive rural project which includes both large scale farming land consolidation and improvement of rural settlement. The comprehensive project must include not only a settlement improvement project to match the settlement to her rich environmental nature, taking advantage of climatic, historical and cultural aspects, but also a project to develop comfortable modern institutions such as cultural education and welfare of the inhabit-ants. Furthermore, enhancement of economic and social activity is also needed, such as attracting technology factories for assuring the employment of the inhabitants, aiming to prevent the population from flowing out of the area. In accomplishing such a project successfully, larger converted substitute lots for non-agricultural use have been more keenly required than ever before. To convince the inhabitants of the necessity for establishment of converted lots and to obtain their cooperation, it is considered to be most important to investigate and develop a reasonable and understandable processing method. This study reports a successful example of converted substitute lots for non-agricultural use in the process of the agricultural land consolidation project which was conducted in Hikawa town, Shimane prefecture. The reasons for the success were analyzed in each case. In addition, some issues and countermoves are discussed for problems which are encountered in promoting converted substitute lots for non-agricultural use
