This report was prepared by Susanne Scheierling (Task Team Leader) as part of Economic and Sector Work (ESW) on ‖Reallocating Irrigation Water‖ carried out in the Water Anchor of the World Bank. In part, the work draws on and builds upon previous research carried out by the Task Team Leader and Robert Young (Professor Emeritus, Colorado State University), including a presentation on ―Measuring Foregone Direct Benefits of Irrigation Water Transfers: The Effect of Model Specification‖ at the 2010 Annual Meeting of the Agricultural and Applied Economics Association (AAEA). Helpful comments on the concept note were provided by the following colleagues at the World Bank: Liping Jiang, Marie-Laure Lajaunie, Xiaokai Li, Halla Qaddumi, and Joop Stoutjesdijk. Robert Young provided detailed comments on the draft report. The Task Team Leader also wishes to acknowledge constructive comments on the draft report from the peer reviewers Caroline van den Berg and Marie-Laure Lajaunie. Romila Sudhir helped with the literature review, and Silke Heuser assisted with the review of water-related projects using the database of the Independent Evaluation Group (IEG). Julia Bucknall, Sector Manager of the Water Anchor, supported the ESW throughout.