The water problem of lateritic red soil in the hilly and platform region of Southern Fujian and its effective management are described in this paper, which shows that the annual precipitation, though abundant, is still much less than annual evaporation capacity in this area. The soil suffers severe seasonal drought and high temperature. It is becoming one of the primary barriers retarding agricultural production. The soil water volumetric capacity, water-storage capacity, and especially the available water-storage capacity, in lateritic red soil are quite small and the water content in the soil available to plant growth is limited, which promote the further development of the drought problem. Under the comprehensive influence of the climate, soil, plant, hydrographical condition and landform, the water problem becomes predominant in lateritic red soil, threatening the crops thereon. It is essential to consummate irragation installations and facilities and develop sprinkling and drip irrigation in a planned way, which may be an effective way to increase water use efficiency on lateritic red soil.