International donors have poured money into developing Nepal’s irrigation infrastructures since the late-1950s, but results remain only partly successful. At present, irrigation infrastructures have been developed to serve 1.331 million ha but the irrigation potential is estimated to about 1.76 million ha. The Irrigation Water Resources Management Project is one of the latest international aid efforts aimed to developing the irrigation facilities while improving Nepal’s institutional framework pertaining to water infrastructure projects. The importance of adequate and timely finance, well-defined administrative roles and institutional capacity building are part of the key lessons learned from this project.