The adoption of agricultural technology not only bears relevance to farmers’ grain production capacity but also holds the potential to impact their cost-benefit outcomes and overall household income. From a micro perspective this study conducts an analysis of farmers who have embraced modern agricultural water-saving techniques while perceiving the value of such technology. The empirical investigation employs an endogenous transformation model to explore the impact and mechanism of technology adoption and value perception on farmers’ income. The primary findings are as follows. Firstly, there is a significant positive correlation between farmers’ labor input and their level of technological awareness concerning the adoption and perception of water-saving techniques. Secondly, among those who perceive the value of water-saving technology adoption,variations exist in the influence of farmers’ personal characteristics on household agricultural and non-agricultural income.Thirdly, farmers’positive perception of technology adoption and labor value contributes to the growth of both household agricultural and non-agricultural income. Therefore, the authors propose several policy implications.At first,it is necessary to include agricultural support policies so as to further promote water-saving technologies and improve subsequent technical support services.Then,efforts should be made to bolster the accumulation of human capital among rural labor forces. Moreover, policy measures should be formulated focusing on differentiated water-saving technology promotion.