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This paper presents a framework irrigation managers can use in assessing performance of irrigation, and recommends a specific set of indicators for measuring performance that the authors believe are practical, useful, and generally applicable. Although the primary focus is on the management of canal systems for agricultural production, the paper also discusses indicators that can be used for assessing longer term performance, including physical, economic and social sustainability. Finally, the paper highlights the crucial importance of strategic, as well as operational management performance, and the necessity of having an incentive system that encourages managers to improve performance.

Irrigation demand in humid regions is at present primarily determined by population growth and the consequent food demand. Most of the population is in Asia, and most of the food demand is for rice. Rice production has increased in recent years at rates considerably ahead of projections. Advances in research on rain-fed rice suggest that the high demand of rice for water may be reduced, and yields in rain-fed areas increased significantly. Thus projections of irrigation demand in humid areas may be greater than necessary. Higher yields have led to lower rice prices in real terms, so that investment in new irrigation systems, including shallow tube-well systems, may be uneconomic if rice is to be the principal crop produced. Rehabilitation and improved management of existing systems can lead to more efficient water use, and a much better investment of resources. As the rice demand is satisfied, irrigation will increasingly be used for other crops. In Africa and Latin America only limited irrigation development has taken place in humid regions, although substantial opportunities exist.