The irrigation system of Pakistan represents one of the largest modern conveyance systems in the world and is a marvel of engineering skill and technology. There are, however, many problems concerning the farm-level portion of the system. This document reports on the progress of Colorado State University (CSU), contracted under an AID-funded project to assist the Pakistani farmer operate and manage the water from the canal outlet through the irrigated field. Among the most significant Colorado State University accomplishments during this report year were: (1) continuation of field studies, including the watercourse cleaning and maintenance research program; (2) completion of watercourse surveys, including physical and socioeconomic aspects; (3) implementation and evaluation, in conjunction with USAID and the Government of Pakistan (GOP), of the On-Farm Water Management Pilot Project; (4) conducting preliminary field studies and seminars regarding alternatives and the legal framework necessary for organizing farmers to improve on-farm water management practices; (5) preliminary development of training materials and training of Water Management Extension Officers for the pilot project; (6) development of related research proposals; (7) completion of a reconnaissance survey for identifying on-farm water management constraints; (8) successful development of various improved watercourse construction and control devices; (9) cooperative research with the major agricultural research centers in Pakistan pertaining to wheat, rice, cotton, and maize; and (10) development of three major manuals (on problem identification, development of solutions, and project implementation) for transferring the results of this project to other LDCs. As a result of the wide dissemination and utilization of research results, water management research activities have been institutionalized, and the need for improved water laws and codes and for strong incentives encouraging development of farmer organizations for watercourse improvement has been accented. Attached to the report are an annotated list of project publications and 32 appendices describing the results of research performed and evaluating the progress of selected project activities in detail.