After Independence, India has devoted much attention to the water development as one of the main task, and consequently, the irrigation potential has substantially increased. This has also effected agricultural production, thus being self-sufficiency in foodgrains at the end of 1970s. The present paper aims to identify water management and regional response in Chambal Valley Project, as an example of the existing large-scale canal projects in India. Two sample villages in CVP area were selected for field survey to correct primary data and information. Summary results of the study are as follows; (1) The CVP is the inter-state project between Madhya Pradesh and Rajasthan with a substantial assistance of the central government in finance and engineering. The dam and barrage in the upper-stream are controlled by the Central Water Commission and the canals are controlled by each state government in their respective territory. The administrative control in village lavel is done by the Amin or the revenue department. Amin is also responsible for inspection of issues and problems of water management. (2) The onset of irrigation in CVP area has increased manifold the irrigation potential. Consequently, the cropping pattern has dramatically changed from rain-fed farming in Kharif season to commercial agriculture in Rabi season. The Diversification of crops has markedly increased in the area. (3) It is very clearly noticed that the water management techniques are rather poor. For example, there is substantial loss of water in canal tail areas. This has resulted in water-logging and salinity of soils. Some effective remedial measures have been adopted under the Command Area Development Programme. The conjunctive water use between surface water and ground-water by tube-well is being promoted. (4) The well irrigation is rapidly increasing, specially in the farmers of non-command areas where the ground-water level is rising rapidly by seepage of the canal water. However, the running cost of well irrigation is 10-25 times more