Water is lifeblood of agriculture. Access to irrigation water determines food security and farm income. Lack of irrigation poses serious constraint to increase agricultural production. Well-controlled year-round irrigation water supply can increase agricultural production and contribute to rural prosperity and economic transformation. Groundwater irrigation is the best alternative source of irrigation that can harness the benefits of available resources at the minimum possible cost and in a short period of time. Promotion of irrigation water markets is one way to enhance sustainable management of groundwater resources. This book provides information about the economics of groundwater irrigation and functioning of irrigation water markets in Nepal. It presents important research findings about factors determining ownership of shallow tubewell, factors determining development of irrigation water markets; costs and benefits of shallow tubewell irrigation; and impact of groundwater irrigation on rice production, food security, and overall livelihoods. These research findings will be useful for policymakers, development practitioners, and donors, and researchers.