This document is meant to present a framework for analyzing the institutions related to water management in a river basin context. The design of the five-country regional study undertaken by IWMI on “Development of Effective Water Management Institutions” provided a new methodology and a framework for river basin studies. It consists of four key components of diagnostic investigations related to water resources management in a river basin, which are interrelated. These key components are the physical system, water accounting, socioeconomic situation and performance. This study design is given in the Study’s Inception Report of 15 June 1999, and the Methodological Guidelines of 1 October 1999. This document takes one step further, and provides a conceptual framework for analyzing the institutional framework for water resources management in a river basin. The major thrust of this framework for institutional analysis is that the four key areas of diagnostic studies in a river basin are shown to be closely linked to the institutional frame work for integrated water resources management in the context of a river basin.

Water is being transferred out of agriculture to meet the growing demand in other areas, often without an agreement of or compensation to farmers with irrigated land and water rights. Furthermore, there is a failure to recognize that irrigation systems supply water not only for the main fields, but also for domestic uses, home gardens, trees and other permanent vegetation, and livestock. Other productive uses include fishing, harvesting of aquatic plants and animals, and a variety of other enterprises such as brick making. In addition, irrigation systems can have a positive or negative effect on wildlife habitats. Thus, the withdrawal of water affects the rural household, rural economy, and the environment in a number of ways. This paper argues that to ensure efficient, equitable, and sustainable water use, to reduce poverty and improve the well-being of the community, irrigation and water resources policies need to take into account all uses and users of water within the irrigation system. The multiple uses of water in the Kirindi Oya irrigation system are examined in this paper. An interdisciplinary group of scientists have investigated a number of areas including water accounting, water quality, household water use, the valuing of water for alternative uses, and the complementarities, competition, and conflicts among uses and users.