The purpose of this paper is to discuss problems with agricultural water management and policy directions in Korea. To address this purpose, this paper overviews the situations and characteristics of agricultural water and examines changes in the water use and associated environment. This paper suggests several problems that make it difficult to achieve efficient water use and management. Especially, old and small sized facilities, decreasing farmer participation, increasing government subsidy, unsystematic water management and supply services, no economic incentive, inactive local governments etc. are emphasized. As well, this paper provides policy direction as follows; repair and reinforcement of existing facilities, modernization of irrigation systems, farmers' participation in regional water management, building new governance, reforming the pricing system, establishing monitoring systems and introducing new rice production systems to save irrigation water.