Irrigation sector investments in Kerala have been mounting since Independence, but the financial performance of these investments has been far from satisfactory. In an era of growing divergence in water supply and demand, the emergence of water markets is imminent. This calls for a realistic pricing strategy for water use, whether in agriculture or other sectors. The canal water though targeted at the agriculture sector, is often put to non-irrigation uses. This paper has discussed a method to quantify the non-irrigation uses of canal water and has assessed the value of the same, based on a sample study in Peechi Irrigation Command Area in Thrissur district of Kerala, India . The value has been assessed for the water used directly for irrigation from the canal system, water used through the recharge facility from the canal and non-irrigation uses (domestic).


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