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Within agroforestry research relatively little attention has been given to water management practices. In order to illustrate the relevance of this management practice, an analysis is made of the integratedmanagement of buffalo ponds and forest gardens in the Badulla district, Sri Lanka. The cultivation of multi-storeyed agroforests around small water reservoirs allows the combined management of vegetation and water resources. The ponds are primarily used for storing water, regulating streamflow, catching sediments and wallowing of water buffaloes. The inclusion of the ponds increases the multifunctional nature of the forest gardens, especially in relation to water, erosion and sedimentation management and animal husbandry, and thus optimizes the complementary nature of forest gardens in the total farming system. [ABSTRACT FROM AUTHOR]