This Policy Note has three mainobjectives : a) formulate strategic choices related to thesustainability of irrigated agriculture in Lebanon. b)recommend institutional strengthening of water resourcemanagement in the irrigation sector in general, especiallyfor operations and maintenance (O&M). c) define theBank's future involvement in the irrigated agriculturesector. As demand for domestic, industrial, and agriculturewater increases, Lebanon could face chronic water shortagesin the next two decades, particularly in the summer months.In fact, signs of such shortages are already apparent, dataon water demand and water balance are conflicting, but theygenerally indicate that the overall annual water balancewill practically go into deficit just after 2020, while thedry season balance will be in deficit in 2004. In additionto existing structural problems, the quality of existingwater resources is being undercut by pollution, such as,direct discharges of municipal and industrial wastewater,uncontrolled solid waste disposal, leaching of pesticidesand fertilizers from agricultural lands, and seawaterintrusion along the coast as a result of over exploitinggroundwater. Faced with this challenge, the Government ofLebanon (GOL) has taken measures to enhance thesustainability of water resources in the country, includingirrigation, which accounts for about two thirds of theannual water use.