Due to climate change and increasingfood prices, emphasis needs to be placed on addressing watermanagement as a key determinant for agricultural productionand productivity. However, governments and donors havetended to pay relatively little attention to this area, andinvestments remain low. This report, which is based oneconomic and sector work carried out in the Water Anchor ofthe World Bank, highlights the importance of improving watermanagement in rainfed agriculture, with a focus on thoseproduction systems where water is a main constraint. Itprovides a synthesis of the state-of-the-art thinking andexperience. Considering the various issues that arecurrently preventing further upscaling of these measures,and better evaluation of the feasibility of applyingparticular measures or combination of measures, the reportproposes options and recommendations for interventions tohelp overcome these issues. In doing so, the report aims tostimulate discussion and encourage new thinking among WorldBank staff and counterparts in client countries who work onenhancing agricultural productivity and livelihoods inrainfed agriculture through improved water management andrelated interventions.