Agriculture is crucial to Pakistan‘s economy and irrigation is the lifeblood of agriculture. The irrigation system of Pakistan is the largest integrated irrigation network in the world. The state managed surface irrigation in Punjab had not been performing well and was deteriorating day by day due to financial, managerial and socio-political factors. Keeping in view the above discussed problems, the World Bank proposed commercialization and privatizations of the irrigation system as the only choice for rehabilitation. However after a series of negotiations, the government of Pakistan agreed upon institutional reforms in water sector of the Punjab. Consequently, in 1997, Pakistan‘s provincial assemblies passed bills to implement institutional reforms in the country‘s irrigation sector. In the province of Punjab, institutional reforms have been introduced in the Lower Chenab Canal (LCC) East irrigation system of the Punjab as a pilot project through PIDA Act of 1997. Under these reforms, management at secondary canal level (distributaries) has been handed over to the Farmers Organizations FOs). The present study was designed to assess the effectiveness of ongoing irrigation reforms in terms of improving water delivery, operation and maintenance (O&M) of irrigation system, equity in water distribution and overall management of irrigation system. It also envisaged the early effects/ impacts of irrigation reforms on overall agricultural productivity and farm income. A well represented sample size of 30 distributaries and 360 farm households was selected for data collection. A multistage sampling technique was used for sample selection. The study employed two level analysis. At first level, assessment of reforms in LCC East (Reform Area) was made on the basis of information from the secondary sources taking into account ―Before and After‖ reform scenario. At second level, assessment of reforms was carried out on the basis of primary data collected at farm household level. Quantitative analysis was conducted by making comparison of set of well established indicators developed by secondary information at distributary level to determine the impact of irrigation reforms on water charges (Aabiana) collection, operation and maintenance of the system, delivery performance ratio (DPR) at head and tail of the distributaries etc. A single equation model was used to capture the impact of irrigation reforms on farm income and productivity. Economic xiv Inefficiency model was also estimated to determine the negative impact of irrigation reforms on inefficiency of the respondents. The results of the study based on comparison of indicators from primary data showed that there was an increase in the crop yields. On an overall basis, all the major crops (wheat, sugarcane and rice) showed an increasing trend in yields. Wheat yield increased by 10 percent, sugarcane by 5 percent and rice by 13 percent respectively. Average gross margin of wheat, sugarcane and rice increased by 6 percent, 38 percent and 43 percent respectively in post reform period. The results of the study showed that cost of production of major crops reduced after reform process. While estimating regression model, Average gross value Product (GVP/acre) of crops (in real prices) was taken as dependent variable to capture the effect of reform process, location of the farm along the distributary and important components of variable cost of production. Similarly, average yield per acre of crops was taken as dependent variable to determine the impact of reform process. The results of the regression model for wheat, sugarcane and rice yield showed that F-Value was 7.08, 6.6 and 5.5 respectively, showing that over models were significant at less than 5 percent significance level. For the estimation of stochastic frontier production function and inefficiency effect model Cobb-Douglas form of production function and translog were used. The key finding of the Inefficiency Effects Model was that the dummy for reforms had negative impact on inefficiency effect for all the crops. The results of the study showed that Aabiana collection increased from 42 percent to 62 percent in post reform period. The study also showed that delivery performance ratio at the tail of the distributary increased after introduction of reform process in the province of Punjab. It was concluded that that the institutional reforms in the irrigation sector have positive impacts on the yield and productivity of the farmers for all the major crops. It was also evident that the reforms also have significant impact on the farms located at the tail clusters of the distributaries.