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Water resources development plays a central role in reducing poverty and achieving sustainable economic growth in Laos. The development of irrigation is vital for the rural population dependent on agricultural production, but irrigation projects have suffered from low levels of maintenance, as farmers have felt little ownership for the government projects. At the moment, a process of Irrigation Management Transfer (IMT) is undertaken in Laos with the aim of transferring the management and operation of schemes to farmers. This article aims at evaluating, how IMT has been implemented in Laos and how it is affecting the sustainability of agriculture.