Due to poorly maintained public watercourses and inadequate field ditches, water conveyance and application efficiencies are low in Pakistan's Indus Basin, the world's largest continuous irrigation system. This paper reports a study team's findings and recommendations for improving the system. Given Pakistan's limited irrigation potential, the team recommends that A.I.D. adopt a twofold strategy, providing supplemental irrigation in rain fed hill areas by developing small irrigation reservoirs (tanks), and, where possible, developing tube wells outside of existing irrigation command areas. Such efforts, which should consider new technologies such as low pressure sprinklers and buried pipes, would help address equity issues and help farmers most in need. Specific programs recommended for A.I.D. support include: evaluation of existing shallow tube well pumping; general analysis of the existing irrigation system to develop area models of water balance, quality, and drainage; a cost analysis of canal, watercourse, and on-farm irrigation improvements, followed by a shallow tube well development program if appropriate; an applied research and development program to improve tube well cost-effectiveness and to provide for in-country tube well production; and extension of rural electrification to service tube wells, using increased generating capacity from direct river-run hydroelectric plants. The team also recommends increased A.I.D. support for politically acceptable water users' organizations, including distribution of training materials and training of field and professional personnel. Continued A.I.D. support of adaptive irrigation research is strongly urged.