In this paper, the concepts of land development and land consolidation were discussed. The functions of the land development and consolidation on balancing the dynamic changes of total cultivated land were systematically analyzed. When replenishing the cultivated land by land development and consolidation, it is essential to carry out the land production potential evaluation both for the cultivated lands occupied by constructions and for the cultivated lands increased by land development and consolidation. It is also essential to conduct the land suitability evaluation and environmental protection in the project area of land development and consolidation.