Currently the management of irrigation systems in Uzberistan is carried out by state water organizations at all levels (national, regional, and district). As the irrigation system was developing the size of some areas was increasing. An analysis of the current situation illustrates that with increases in yield and water use no proper operation and maintenance of the systems was provided which resulted in their breakdown; so that new investments are required for restoration. However, the structure and functions of existing institutions, resulting in lack of incentives for individuals, are not likely to achieve efficient water use and operation of the system. It is therefore considered that institutional reforms are required to provide incentives for more efficient operation and maintenance of irrigation systems, while reducing costs.