Institutionalization of Water Users’ Cooperatives (WUAS) is one of the strategies for cooperative irrigation management, which lays the foundation for the participation of farmers in tackling water shortage challenge to reach the objectives of sustainable management of agricultural water in an efficient manner. The main purpose of the present study was to identify the grounds for improving WUAs and prioritizing the effective factors for developing and strengthening these cooperatives. The statistical population was comprised of experts and members of the board of directors as well as elite farmers who were WUAs members in 2015 (n=40). The interviewees were selected through consensus sampling. The analytic hierarchy process was used to prioritize the mechanism of improvement and development of WUAs. Based on the final weights of the criteria, the mechanisms received the following scores: supportive mechanism (0.266), agricultural irrigation management (0.261), economic mechanism (0.183), education and extension (0.123), and legal mechanism (0.090) and WUA’s members’ attitude (0.076). Accordingly, the supportive, agricultural irrigation management and economic mechanisms were the most important mechanisms to improve WUAs. Hence, it is recommended that low-interest financing should be provided by the Agriculture Jihad Organization in collaboration with the Agricultural Bank for transforming from traditional irrigation to localized irrigation.