Consciously creating a landscape plan is the first principle of xeriscaping. Such planning helps in defining existing conditions for choosing plants. In particular, identify different zones by water usage -- those that will require supplemental watering, for example.
(Drawn from info on planning in all references)
The second principle concerns soil. Soil testing aids soil improvement but choosing native plants may allow you to use your soil unamended. Compost and other soil supplements can help improve water retention, as well as provide nutrients.
The heart of xeriscaping concerns the third principle -- efficient irrigation. Knowing where, how, when and how much you need to irrigate conserves water. The zones identified in planning determine where to irrigate. Gear different methods to the plants involved: sprinklers for turf, but drip irrigation for shrubs, for example. Only irrigate if there is insufficient rainfall. When you do irrigate, water deeply. Use gauges or controllers to determine how much water you've applied.
The fourth principle concerns selecting plants suitable for the different zones identified in your design. Group plants with similar water needs. Put plant groups that need water in low-lying areas and close to water sources. Although many associate desert plants, such as cactus, with xeriscaping, the key is choosing the right plant for the available water. In "Xeriscape North Carolina" by Douglas F. Welsh, Ph.D. and others at North Carolina University, note that traditional flowering shrubs, such as forsythia, and perennials, such as phlox and daylilies appear on the suggested plants list.
Mulch is the fifth principle. Mulching reduces soil evaporation, conserving moisture and reducing the need for irrigation. An added bonus is that mulches keep down weed growth. Organic mulches, such as bark or shredded wood, also help improve the soil as they break down. Gravel and rocks do not need replacing, but can increase heat in warm climates.
Turf alternatives are the sixth principle. Lawns require much more water than other alternatives. Confine turf to limited areas using drought-tolerant grasses. Substitute paving or decks, mulched areas or other groundcover plantings that require little irrigation.
The seventh and final principle of xeriscaping is maintaining your landscape. Water when necessary. Provide proper care for your plants, such as fertilizing and pruning. Watch out for pests and diseases and treat them accordingly. Maintain mulch levels about 2 inches deep for inorganic mulches and 4 inches for organic mulches.