Malopolska region is the region specific in many respects, it has crucial importance for the proper functioning of both economy and social life but also natural environment of Poland. Poland’s integration into the European Union provided a major and unique chance for relatively fast improvement of economic situation of rural dwellers and primarily for regulating processes associated with water cycle and water erosion, and the necessity to protect water resources and natural biocenoses which have been disturbed or degraded in result of too intensive development of agriculture in these areas in the past. EU agricultural policy allocates sufficient means from the Community funds to these aims but only if a number of complex activities to improve agricultural facilities and agrienvironmental measures are implemented by the farmers of the region. In many parts of the Malopolska farm production should be connected with protective and conservative measures. Agriculture in the province, so far focused only on production, should change into multifunctional one in the nearest future. The authors think that because of specific landscape, therapeutic, recreational and cultural values of mountain and upland areas of Malopolska and their importance for national economy and flood-protection of the country, three provinces (Malopolska, Podkarpacie and Silesia) should be included in a separate operational programme providing means for rational and complex reconstruction of rural utility structures.