Achieving balance between water demand and supply is crucial for sustainable agriculture in semi-arid countries. Many agronomic options and socio-economic measures can be applied to reduce water demand in agriculture sector without compromising its performance. This work investigated some specific management options for the improvement of the performances of the irrigated agricultural systems in Northern and Southern parts of the Jordan Valley under normal and dry year's conditions. An economic model was developed, calibrated and applied to evaluate farmer's income, water supply/demand balance and economic water productivity under different policy and water management scenarios. The overall results indicated that water productivity was lower in Southern than in Northern part of the Valley and that the improvement of the irrigated agriculture performance in the region can be achieved through the modification of cropping pattern (cultivating date palms and tomatoes instead of banana in the South) and the introduction of regulated deficit irrigation (for citrus in the North and for barley in the South).