A brief history of A.I.D. irrigation projects in Bangladesh prefaces this analysis of development options (e.g., irrigated vs. rain fed farming, expansion vs. intensification of irrigation) and investment strategies (e.g., direct and indirect funding) for A.I.D. involvement during the 1980's in that country's irrigation sector. It was found that although existing irrigation projects have not met expectations (a major reason being inadequate water distribution in the field), the potential for improving them is great. Besides recommending the redesign of two proposed projects (Rural Irrigation Works and Nobagana Integrated Land and Water Use Study), the study team advocates A.I.D. support of: (1) rain fed agriculture (given Bangladesh's abundant water supply), while yet reserving a major emphasis on irrigation development; (2) supplemental irrigation with existing pump operations, designed to operate year-round; (3) cost-benefit studies of irrigation alternatives; (4) the private sector, but not of integrated land and water management projects that lack a strong monitoring and problem-solving capacity nor, given A.I.D.'s experience with large projects and the Government of Bangladesh's commitment to small projects, of further large projects; (5) software development, adaptive research, studies and planning for comprehensive agricultural resource development, and studies of the role of women in irrigation projects; (6) on-farm water delivery, provided a cost-benefit analysis per unit of command area is undertaken; and (7) given the widespread malnourishment of Bangladesh's rural population, of vegetable production in new irrigation projects. Discussions of irrigation strategy in Asia and of the water balance in Bangladesh are appended.