Drylands are of high ecological vulnerability due to low vegetative cover and erratic and torrential rainfalls. The aim of this study was to evaluate the use of different sources and rates of soil moisture retainers in the establishment of buffel grass (Cenchrus ciliaris L) in a micro watershade system of rainwater. A randomized block design with three replications was used. Four hydrogel doses: 0, 5, 10 and 15 kg ha -1 and two vermicompost doses: 0 and 40 t ha -1 , were tested. The dose effect of the hydrogel was independent of vermicompost dose effect, on soil moisture retention and the growth and development of the plant. The soil moisture values when 5, 10 and 15 kg hydrogel ha -1 were applied (25, 23.2 and 23.4 %, respectively) were higher (P0.05), than the control (17.5 %) 241 d after sowing (das). However, there were not statistical differences among doses of hydrogel other than the control. A similar effect was found at 346 das; but not to 372 das, where the effect was lost. Plant emergency was significantly higher (47.7 %) when 15 kg ha -1 of hydrogel were applied, compared to the control (29 %) (P0.05). Plant height and weight of dry matter and a higher photosynthetic activity were significantly greater in treatments with hydrogel than in the control; there were not statistical differences among doses. Finally, the application of 40 t ha -1 vermicompost significantly increased the moisture content in the soil and a higher amount of buffel grass dry matter.