The main purpose of this paper is evaluating the competitiveness of the Alqueva irrigation project in the Alentejo region, South of Portugal. This study was based on three representative farms which were selected from one farm sample of the Monte Novo irrigation scheme. For each farm, it was developed a multi-period mathematical programming model which represents its specific skills. Results show that Common Agricultural Policy and Water Framework Directive have adverse impact on competitiveness. However, the adoption of new technological innovations and more environmental sustainable systems of agricultural production might help to mitigate those adverse impacts and promote the competitiveness of this irrigation project.