Watercourse improvements conducted under A.I.D.'s On-Farm Water Management Project in Pakistan have enabled farmers to increase their crop yields and incomes. This report analyzes the setting, history, and impact of the project. While water user associations were not effectively established, farmer awareness of the importance of mutual cooperation grew, informal mechanisms have been quite successful in maintaining watercourses, and demand for watercourse improvements has risen. However, the project failed to increase district government awareness of the need for on-farm water management and failed to institutionalize a mechanism through which that need can continue to be met. Moreover, the project design did not address regional differences, baseline data collection and project monitoring were inadequate, and the cost of watercourse improvements exceeded original estimates. Planned precision-leveling of fields to improve water use was not as successful as envisioned due to farmer reluctance to participate and the Pakistani Government's decision to deemphasize leveling. Nor was extension training of farmers adequately implemented, due partly to competition with an existing extension service as well as to A.I.D.'s use of the fixed amount reimbursement mechanism. Project experience also showed that: (1) costs could have been reduced and benefits spread wider if farmers had been asked to contribute, as they were willing to do; (2) flexible project design is needed to adapt to local needs; (3) in a cultural setting where community cooperation is not traditional, formal structures must be built to ensure system maintenance; (4) concentrated land ownership can cause small farmers to realize little increase in water; and (5) more attention should be given to planning extension functions, training implementers and extensionists, collecting baseline data, and developing local governmental commitment. Appendices provide sample data; the evaluation methodology; a case study of the project's impact in Sind; and papers on the implications of on-farm water management, the project's economic impact, the socioeconomic impacts of increased income, and the role of honor, power, and rivalry in Pakistani villages.