In the Loess Plateau of China, soil water has three ecological properties: high infiltration capacity, high storage capacity and availability to deep plant roots. Soil desiccation is the most serious problem for forest vegetation in the Loess Plateau. Arid soils are the result of intensified soil desiccation caused by disturbances in plant succession, which constitute the ecological foundation of soil water. The negative effects of the arid soil layer on surface water infiltration for recharging underground water are discussed in terms of ecological hydrology. The arid soil layer disrupts the link between surface water and underground water and prevents vertical precipitation infiltration from supplementing underground water. Forest vegetation has a significant runoff-retaining efficiency that reduces total runoff from forest areas leading to low surface and ground runoff which affect the water cycle on a watershed scale.