This study aims at estimating the cost of irrigation and its implications on water savings, productivity, net returns, and relative profitability. The study finds that irrigation cost forms a sizeable proportion of the total cost of production in both flow irrigation and micro irrigation systems. The economic analysis indicates that the crops considered are profitable-as reflected in the net returns realized, with and without irrigation cost-but upon accounting for the irrigation cost with externalities we see a sharp fall in net returns for all the crops. Nevertheless, micro irrigation enabled water savings, and it enhanced productivity and relative profitability.