Topographic variations, water losses, problems regarding right of way and unresolved user conflicts are some of the limiting factors affecting irrigation efficiency in Bangladesh. Underground low pressure pipe system can remove some of the weaknesses of traditional distribution systems. An economic analysis of what is thought to be the first underground irrigation system in Bangladeshis reported. Results show that the current high cost of pipe make the underground pipe option considerably less viable in the presence of the open channel alternative. Nevertheless there is need for conducting further research on the system considering the fact that there may not be enough surface water in dry season and groundwater may become a very major source of irrigation in about 5-10 years.