Abstract
Irrigation water pricing has been considered as a tool to enhance water conservation in irrigated agriculture. We have evaluated the effects of water pricing on water management practices in Awash Basin Authority (ABA). The water charge has been collected over years with the aim to generate money for the Awash Basin Authority to cover operational expenses. Both the authority and water users see the charges paid as the contribution than as water demand management tool. Widespread irrigation inefficiency and low performances are more due to low level of irrigator’s knowledge to manage water, poor water conveyance and distribution systems, public ownership over large and medium-scale irrigation schemes, and inability to measure and control water. Increasing water price under such service conditions will only add burden to farmers and unlikely to be feasible. Despite these poor water delivery services, users are willing to pay relatively more than they currently pay which could increase the income of the basin authority. Improvement in irrigation water management requires strengthening of irrigation research and extension services, building the capacity of irrigators, and improving irrigation system operation and maintenance services. Key words: Irrigation, water pricing, irrigation performance, willingness to pay.  
Highlights
In developing countries like Ethiopia, agricultural sector is the dominant food supplier to the nation and sources of livelihood for more than 85% of the population
The aim of this paper is to evaluate the effects of water and service charges on scheme-level irrigation performances and users’ willingness to pay for irrigation water
A total of 31 irrigation water users out of 66 legally registered users were interviewed to collect information relevant to willingness to pay for irrigation water
Summary
In developing countries like Ethiopia, agricultural sector is the dominant food supplier to the nation and sources of livelihood for more than 85% of the population. Even if the country is known for its abundant water resources potential, this dominant economic sector depends entirely on rainfall. 90% of the annual renewable surface water resource is shared with other neighboring countries. With low industrial development and only 16%. Of the population living in urban areas, agriculture can be considered as the dominate consumer of water. License 4.0 International License other hand, as a result of poor agricultural water management practices, inefficiency in water use is common.
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