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This paper was presented by the author in the first ICID Conference, in 1992, and was based on his extensive and intensive contact with the Northeast and Semi-arid of Brazil. It presents a historical perspective of the evolution of public policies for the development on the Northeast and shows its longtime relationship with the problem of the droughts in the so called drought Poligon. It describes the institutional development and the predominance of the hydraulic concerns during more than a century. In the fifties of the XX century, a new perception implied a new institutional development framework, with the creation of the Bank of the Northeast and of SUDENE, and a broader perspective of development that started to focus on economic welfare issues. Th e development of human resources is emphasized as a key component of any development strategy. Th e historical experience is instrumental in the design of future sustainable development strategies for the Northeast. [ABSTRACT FROM AUTHOR]