In European agriculture, the changing environmental and institutional context is setting the path for the development of new technologies and relevant patterns of diffusion. This is particularly the case for irrigation practices. The present study explores new frontiers for optimizing the use of water resources in agriculture through “Precision Irrigation” (PI). The main purpose of the study is to develop a theoretical framework to assess the adoption of PI. This framework has been validated and integrated through a Delphi study involving a structured group of experts. The experts provided insights into where and when PI can be considered a promising innovation and regarding the actions that should be undertaken to overcome barriers to its diffusion. Thereafter, a methodology was designed in light of the economic theory of information. An empirical example is offered to illustrate the circumstances in which the adoption of PI is more likely to be of benefit according to crop growth and soil water balance model rules. The paper concludes with a discussion of the extent to which PI can be considered an instrument capable of meeting the main concerns addressed by the WFD and the new CAP reform.