There is ample evidence that canal systems often fail to reach their design capacity. This study
argues that inefficient allocation of water within canals is one cause. This study collects precise
measures of farm level water withdrawals using flow meters in a canal in Pakistan. This data
reveals that farmers near the head of the canal get more canal water than farmers near the tail, even
accounting for conveyance efficiency. The results suggest that improvements in canal water
management would yield efficiency gains for the canal.