The development of an integrated state policy for the restoration of the irrigation and the implementation of appropriate institutional changes and the introduction of new financial and economic mechanisms for its sustainable operation. Institutional changes in irrigation management are becoming the main condition for attracting investment in restoration and modernisation of irrigation infrastructure. Existing developments in the transformation of irrigation management in Ukraine require assessment and alignment with the realities of existing agriculture practice and the state of formation of the general water policy of Ukraine in recent years and also taking into account other reforms, such as land reform and decentralization in rural management. The aim of the research was to adapt the methodological principles of irrigation management transformation to modern conditions of agricultural production and directions of reforming water resources management and water infrastructure (the main state water management and reclamation infrastructure and on – farm irrigation systems). To select a sustainable model of institutional reform in the management of irrigated systems in Ukraine, systems analysis and the method of scenario planning and indicative comprehensive assessment of scenarios is proposed. Based on the use of PEST and SWOT-analysis of general socio-economic and political conditions, the state of modern agricultural production and the use of irrigation, three most probable scenarios of irrigation reform are proposed and an analysis of benefits and risks for each of them were conducted. A method of comparative indicative assessment of different scenarios for the implementation of institutional reform has been developed, which characterizes the efficiency of water use and irrigated agriculture in the creation of new institutions and risks to ensure quality services for water users.