This document is the second of the ten Policy Papers to be prepared under the IMPSA Program. It is a synthesis of eight staff working papers on the issues related to this topic. The paper describes the institutional arrangements for irrigation management at the policy and field levels and in all sizes and types of schemes required to implement the long-term policy statement contained in Policy Paper No. 1. It defines the roles, responsibilities, and functions of each institution or organization with respect to the management of water and the operation, maintenance, rehabilitation, and improvement of irrigation facilities; describes the linkages and relationships of these institutions to the farmer, and provincial and district officials; defines the committees and other mechanisms required for effective coordination of programs and collaboration among the institutions concerned with irrigation management and diversified agricultural development, including farmers' organizations.