Irrigation development is one important rural development strategy
of Ethiopian government in reducing the risks associated with
rainfall variability. As a result, a number of modern irrigation
schemes have been constructed though their natures, directions and
magnitude of contribution on households' income is not clearly
known. Therefore, the aim of this study was to examine the link
between small-scale irrigation and household income based on data
obtained from sample respondents. The data was analyzed based on
Heckman-two-stage econometric model which follows participation and
outcome equations. The participation equation of the model revealed
that sex, access to extension services, access to credit and
financial constraints were significantly affects probability of
participation in irrigation water utilization, whereas, access to
credit, livestock holdings and proportion of irrigated land size
were also significantly affect households' income in the outcome
equation. Therefore, the findings of the study suggested that any
efforts in irrigation development should give more focus on
strengthening enabling socio-economic and institutional
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