This paper examines the uses and management of water for agriculture in Lake Chilwa catchment area in Zomba district of Southern Malawi. It focuses on the Likangala Rice Irrigation Scheme Complex situated along the Likangala River. The scheme is one of the largest government-run schemes. Established in the late 1960s by the government to meet the growing demand for rice, the scheme contributes greatly to the agricultural industry of the country. Besides, the scheme was established to ensure maximum utilization of Malawi’s largest wetland, which, due to its hydromorphic soils and the littoral floodplains, does not favour the production of traditional upland seasonal crops such as maize. The scheme’s overdependence on water from the Likangala River has attracted a considerable degree of academic interest in the use and management of the river to ensure that there is equity and efficiency for both productive and domestic users. The paper focuses on four main issues: the historical development of the scheme, the distribution of water to farmers, social relations, and the overall contribution of the scheme towards the social and economic development of the area and the country in general. The paper contends that the growing population of the basin and the increase in the number of formal and informal smallholder farmers, contributes greatly to the growth of competition and conflicts over water, which tends to undermine the economic potential of the scheme. Furthermore, the paper provides clearest indication of the need for a realistic and informed water management policy and strategy to solve the growing problem of social inequity without necessarily compromising the production of rice in the scheme.