The agriculture industry is a major water consumer in the economy, accounting for 70% of the world's water consumption. The majority of water is used for irrigation of crops and pastures, while only a small amount is used for other agricultural purposes such as stock drinking-water, and dairy and piggery cleaning.

This causes an increased demand for water, as irrigation can reduce water availability for other purposes. This is a cause of water scarcity. A reduction in water supply can cause great distress for enterprises such as rice and cotton growers as the decrease in the irrigated area for these crops, due to dry conditions, results in no growth. No growth no harvest. No harvest, no profit.

Irrigation is a vital part of the economy as without an efficient water supply for irrigation, farmers could not grow crops and provide foods for the large world population.

Water is also needed to raise livestock (cows, chickens, sheep, fish or rabbits etc.). Here, the water is used for raising the animals and also in the production of meats, poultry, eggs and milk. Farmers often construct livestock watering ponds (dams) to accommodate the watering needs of animals.