Changes of land-use and land-cover strongly influence stream ecosystems. In the present study we evaluate the effects of these changes on the biological condition of Upper Xitiaoxi watershed Zhejiang Province, China, using a benthic index of biotic integrity (B-IBI). Benthic macroinvertebrate assemblages were sampled from 62 sites in first- to fourth-order streams in 2004 to 2005 to develop a B-IBI. The land covers for each site was estimated at sub-basin riparian-zone and local scales using 2003 satellite image and a Digital Elevation Model. We showed that B-IBI was negatively correlated with the percentages of croplands, bamboo forest, and the residential area. The percentage of croplands was strongly and negatively correlated with B-IBI at all three spatial scales, sub-basin (r=-0.527, p<0.001), riparian (r=-0.665, p<0001), and local scales (r=-0.696, p<0.001). The percentages of coniferous forests, broad-leaved forests, and blend forests were positively correlated with the B-IBI. The percentage of the broad-leaved forests was strongly correlated with B-IBI at the local (r=0.618, p<0.001) and riparian scales (r=0.589, p<0.001), and less so at the sub-basin scale (r= 0.333, p<0.001). However, the percentage of coniferous forests was significantly correlated only at the sub-basin scale (r=0.366, p<0.001). With croplands < 50% of the whole catachment, B-IBI declined linearly as the percentage of the cropland increased, however, the index leveled off when cropland reached 27% of the sub-basin, 57% of riparian zone, or 59% at the local scales. Furthermore, the linear correlation of the percentage of the cropland at local scale with B-IBI was the strongest (r=-0.808, p<0.001, n=46). Our results suggested that a buffer with higher percentage of forest land cover between stream watercourse and cropland should help to maintain or improve the biological conditions of Upper Xitiaoxi watershed.