On February 25, 2026, the Verkhovna Rada of Ukraine adopted in the second reading and in full Draft Law No. 7577 “On Amendments to Certain Legislative Acts Regarding the Improvement of the Management System for State-Owned Irrigation Infrastructure Facilities.”

The law was supported by 229 Members of Parliament.

The document provides for the establishment of operators of state-owned irrigation networks in the form of state non-commercial enterprises, the separation of functions related to water resource management and engineering infrastructure management, the creation of a modern management model for large-scale systems that cannot be transferred to individual Water User Organizations (WUOs), and the involvement of not only farmers but also other water users in managing such facilities. Oversight of the operators’ activities will be carried out by supervisory boards with the participation of water users interested in irrigation or drainage.

The law also introduces a two-part tariff for irrigation and drainage services:

• a variable component (for water supply or drainage), and
• a fixed component (for maintenance and modernization of the reclamation system).

This marks the transition to the next stage of hydraulic land reclamation reform: the state retains control over a strategic resource, while infrastructure management is carried out based on transparent economic principles. This approach will:

• reduce water and electricity losses;
• attract private investment;
• decrease budget expenditures;
• improve management efficiency.

For the agricultural sector, this means opportunities to expand irrigated areas, increase crop yields, and boost production of high value-added crops. For the state, it means reduced budget pressure and increased tax revenues resulting from the development of irrigated agriculture.

In the long term, modernization of irrigation systems will generate demand for modern pumping, energy, and irrigation equipment, creating opportunities for more than $2 billion in investment and technological partnerships.

The draft law was developed with the support of the AGRO Program, funded by the U.S. Government. The document is the result of joint efforts by AGRO Program consultants, experts from the Association of Water User Organizations (AWUO), and the Ukrainian Agri Council (UAC).

A decisive role in the adoption of the draft law was played by the Verkhovna Rada Committee on Agrarian and Land Policy and the Ministry of Economy, Environment and Agriculture of Ukraine.

We thank all Members of Parliament who supported the draft law and look forward to its prompt signing by the President of Ukraine and entry into force. The next stage will involve the development and adoption of secondary legislation necessary for its full implementation.

The irrigation reform is a test of Ukraine’s ability to transform the management model of state assets. Law No. 7577 creates the legal and economic foundations for large-scale modernization and technological renewal of the state irrigation infrastructure.