This report is based on the results of a case study carried out in the Kirindi Oya Irrigation and Settlement Project (KOISP) in Southern Sri Lanka. The report describes the problem of water scarcity in the KOISP. With the use of graphs and charts, information regarding the water shortages, the contribution of rainfall, seasonal variations and trends of inflow are discussed in great detail. The report looks at issues related to the reduction of the monthly flow and the storage especially when it is less than expected. It analyses the impact water scarcity has on agricultural performances. The report specifically looks at the water scarcities in Yala in the years 1992 and 1999, and analyses the impacts that these drought seasons have been undergoing. The report includes the farmer’s perceptions and the variations in the paddy yield. Based on the information and data presented, the report includes conclusions regarding water scarcity and managing seasonal water crisis.