DEMs play an important role in the supervision and preservation of soil and water conditions, but at present, it is difficult to construct large scale DEMs. An idea and technical method to construct a DEM based on index contour is put forward for the first time. Using loess hilly and gully area as test sites, the authors assessed the accuracy and application feasibility of this type of DEM. The experiment shows that although there are some certain errors in these simplified DEMs, as well as in the terrain features derived (i.e slope, aspect, surface curvature, donga density, surface roughness and undulation), these DEMs can satisfy the application and analysis of terrain. It is a quick, concise and effective technical method.