The Lower Bari Doab Canal (LBDC) system is one of the large old irrigation systems in Punjab, Pakistan. To overcome problems of water distribution and management in conventional state‐managed irrigation, a participatory irrigation management (PIM) system was introduced in the LBDC command area in 2012. From the very large system of the LBDC, 20 different kinds of distributaries were selected in this study as representatives for evaluating performance of the new system. The primary data were gathered through questionnaires and by interviewing farmers, whereas the secondary data were gathered from the related offices of the Punjab Irrigation Department. The analysis of collected data illustrates that water service deliveries (WSDs) were poor even after implementation of PIM. The research shows that under administration of both systems, efficiency regarding provision of water seemed to be poor. The outcomes show that with the passage of time, recovery (abiana) decreased after implementation of the PIM system but the financial sustainability of PIM has improved compared to state administration. Finally, the current study recommends institutional reforms in PIM and comprehensive work on educating the farmers about their role in PIM as a mandatory component for improving efficiency of the PIM system.