Income Distribution Impacts of Irrigation Water Distribution Policy

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Abstract
In the majority of lesser developed countries (LDC's) there is acute inequality in income distribution in the rural sector, particularly between large and small farms on the one hand and between land owners and the landless on the other. Irrigation water distribution policy of the government is both an economic and political problem. It has both equity and efficiency implications. It has effects on both the level and distribution of income. This paper deals with the conditions under which using water redistribution as an effective governmental policy variable can reduce inequality in the distribution of income. This paper also deals with the relationship between the objectives of equity and efficiency in water distribution under different objective realities, such as dualistic versus nondualistic conditions, two‐sector versus three‐sector modeling, optimum versus equal water distribution, specifically to derive the conditions under which promotion of equity promotes efficiency and vice versa and the conditions under which it does not.

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