Irrigation by private development has been increasing in North Dakota and will continue in the future. The question many ask is what effect does this type of development have on the surrounding business community? Capital for the purchase of the irrigation system and the increased income and expenditures of an irrigation-type agriculture are spent largely in the local community. This study was undertaken to determine the effect on the business community in southwest central North Dakota of irrigation development. The work was done cooperatively by the Agricultural Economics Departments of the Agricultural Experiment Station and the Cooperative Extension Service, North Dakota State University. It is hoped this report will serve as a useful guide in estimating the effects on a community resulting from irrigation development.