This paper has been presented at the Fifth International Seminar on Dynamics of Farmer Managed Irrigation Systems: Socio-Institutional, Economic and Technical Context, Kathmandu, Nepal, 25-26 March 2010, organized by Farmer Managed Irrigation System Trust. International Water Management Institute, the then International Irrigation Management Institute (IWMI) began its activities in Nepal since 1986 with a Memorandum of Understanding with His Majesty's Government of Nepal, now the Government of Nepal.